Long-term markets are envisaged to play a key role in helping achieve the EU’s Green Deal ambitious objectives. Increased price volatility in the electricity system, due to the acceleration of renewable energy source (RES) deployment and exceptional geopolitical circumstances, is accelerating the focus on these markets to help market participants manage their risks.

Having received less attention in the past few years compared to the day-ahead and intraday markets, the long-term markets now face several challenges, including a lack of liquidity. These challenges are highlighted by the fast adoption of low-carbon generation, which will increase the need for hedging opportunities due to the expected growing price volatility in the years ahead.