European electricity futures markets in crisis of fragmentation

European electricity futures markets in crisis of fragmentation: persistent liquidity shortages hamper risk management

A new report realized by the Balkan Energy School (BES) has highlighted the persistent challenges and fragmentation afflicting European electricity futures markets. These markets are essential tools for managing price risks, stabilising revenues and costs, and supporting long-term investment decisions. Although Europe has made significant progress in integrating day-ahead and intraday markets, forward segments remain fragmented and less effective in fulfilling their core functions.

Contents:

• Fragmented liquidity and imperfect proxy hedges
• Ineffective cross-border hedging instruments (LTTR)
• Structural and regulatory constraints
• Structural and regulatory constraints
• Key stakeholder positions and policy options
• Power exchanges and trading associations