Performance Comparison Between Renewable Obligation and Feed-in Tariff with Contract for Difference in UK

The UK has recently made a movement in its renewable incentive policy. The current Renewable Obligation scheme is considered not capable to meet future supply requirements and UK's ambitious decarbonization target. Therefore, the government adjusted the renewable support scheme to the feed-in tariff with contract for difference scheme, which is believed to provide renewable generators' more confidence in renewable plants installation. A fitness model is proposed to assess renewable subsidy schemes' performance. Their performances are compared under their optimum subsidy strategies via a dynamic optimization method that can characterize the market expanding effects. This study demonstrates that CfD is a more efficient and cost-effective renewable incentive scheme.