Forward markets for electricity help reduce risk, control market power, and encourage new investments. In the short term, these markets allow buyers and sellers to lock in energy prices and quantities for up to three years. In the long term, they ensure there are enough resources available when needed most. By using forward markets, both sides of the market can reduce risk and avoid volatile spot prices. This also helps balance power between suppliers and buyers during spot market transactions. Additionally, forward markets lower transaction costs, increase liquidity, and improve transparency. Innovations in the Colombia market show how forward markets work and their positive impact.