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<p>The reference prices we use for the Contracts for Difference budget are an output
from the Department’s main power model and are characteristic of decarbonisation pathways
that are net-zero consistent.</p><p> </p><p>Budgets are set based on a wide range
of factors such as an assessment of the pipeline of projects that could participate
in the auction, rather than being a pre-determined monetary constraint. If reference
prices were higher or lower, the budget would change accordingly, and approximately
the same capacity would likely be successful in the auction.</p>
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