Pilot call Klimaatsprong transition instrument Contract for Difference

Large industry (both covered and not covered by ETS) with more than 10.000 tonnes of CO2 emissions per year can apply for a one-off pilot call organised by the Flemish government via VLAIO. The investment and fuel costs of an electric boiler (>2 MWth) or a heat pump (>500 kWth) will be supported by a contract for difference. The support will be granted to the lowest cost per avoided tonne of CO2. Based on the real gas and electricity prices the cost of avoided tonne of CO2 will be compared to the strike price and the bottom price. This will determine if and how much support needs to be paid to the applicant in the contract for difference, while in case of a profitable business case, the applicant will repay (part of) the received support. The Flemish government made 70 million EUR available for 10 years and aims to support 3 to 4 projects.

PowerPulse can help you defining your strike price based on long-term prices and forecasts of flexibility and imbalance services. If interested, feel free to reach out.