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Contracting for Wind Generation / David Newbery. Cambridge : Electricity Policy Research Group, 2011, 25 p. (Working Paper: EPRG1120)http://www.eprg.group.cam.ac.uk/wp-content/uploads/2011/07/EPRG1120_Complete.pdfAbstract: The  UK Government proposes offering long-term Feed-in-Tariffs (FiTs) to  low-carbon generation to reduce risk and encourage new entrants. Their  preference is for a Contract-for-Difference (CfD) or a premium FiT  (pFiT) for all generation regardless of type. I argue that neither is  suitable for on-shore wind, where a fixed FiT appears less risky. The  estimated extra trading and balancing costs of a CfD for on-shore wind  might be £70 million/yr by 2020, while the cost of the increased risk  incurred by a pFiT might add another £180 m/yr.  If similar savings were  made to projected off-shore wind investments the savings might be three  times as high. 