FSR

Episode 6 | Rethinking long-term contracts for the energy transition: Part 1


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The sixth episode of the ‘FSR Policy Briefcase’ unpacks the subject of 'long-term contracts' in the electricity sector and explores some of the ways that a fresh look at this tool could help deliver the energy transition.
For this episode, regular hosts Leonardo Meeus and James Kneebone are joined by part-time Professor of FSR Leigh Hancher. The conversation builds on the recent publication of her Technical Report on this subject, co-authored with Guillaume Dezobry, Jean-Michel Glachant, and Emma Menegatti. This is part one of a two-part series on this report.
This first episode focuses on the definition and relevance of long-term contracts, or 'LTCs' as they are more commonly referred to, as well as some of what Leigh considers to be limitations or missed opportunities in the previous framing and application of these agreements in Europe in the past. We learn about the different kinds of LTCs, their uses, some important case studies shaping their governance, and how some other major global economies have successfully framed LTCs differently. Towards the end of the episode, we begin to talk about the implications of a fresh look at LTCs for driving the competitiveness and decarbonisation of European industry, an area of the report we will cover in more detail in part two next month.
The full report can be found here: https://cadmus.eui.eu/bitstream/handle/1814/76880/RSC_TR_2024_05.pdf?sequence=1&isAllowed=y
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