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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.
Published as De-risking renewable energy investments: Assessing contract design and project finance using operational wind park data arXiv:2605.23400
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