Two-way contracts for difference are becoming the dominant model for offshore wind energy support in the region
The mechanism of two-way contracts for difference is becoming the dominant support instrument for offshore wind energy projects in the Baltic Sea region. Lithuania is already moving towards this model, while Poland is gradually transitioning to a system of dynamic price adjustment and regional differentiation. This approach provides greater stability for investors by reducing the risk of market price fluctuations and ensuring long-term revenue predictability. At the same time, the state controls the amount of support, preventing excessive use of subsidies. However, national models differ – for example, in terms of the duration of two-way contracts for difference, indexation methods, capacity commitment obligations, and termination mechanisms. This means that investors need to conduct an in-depth analysis of each country’s system in order to avoid legal and financial risks. The lack of harmonization complicates the implementation of cross-border projects but also offers flexibility for national strategies.