Read: Electricity market must be future-proofed
Download: Market Model 2.0 - Final report
Future-proofing the electricity market
Well-functioning markets, with strong competition and a high level of flexibility in terms of both supply and demand, are prerequisites for a socio-economically efficient transition of the Danish energy supply with a continued high level of security of supply. A new market model will help ensure this.
A new market model is to contribute to a healthy investment climate in the energy sector and encourage interaction and flexibility across the value chain.
Current market model - why is it challenged?
Since the liberalisation of the electricity market, the current market model has contributed to optimising the use of existing generation facilities and has ensured balance between consumption and generation. International market-based solutions across borders play an increasingly important role in ensuring a joint optimisation of energy resources at regional and, in the long term, European level.
In step with increasing amounts of renewable energy, the current business model is put under pressure, where especially conventional generators are challenged. This means a risk of insufficient capacity during future periods with limited renewable energy available, eg during periods without wind.
Read more: About the wholesale market