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Can governments cut renewable financing costs without killing market signals?
Jorge Sánchez Canales, Lion Hirth
May 22, 2026
Using real operational data from 63 German wind parks, researchers modeled how different contract structures affect project financing. Financial contracts-for-difference matched the risk-reduction of conventional subsidies while preserving exposure to wholesale prices. This suggests policymakers can cheapen renewable debt without sacrificing market efficiency.
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