The Danish electricity market is an integral part of the free Nordic electricity market. Both Danish and EU authorities have supported liberalisation in order to stimulate free competition in electricity production and trade. Trade on the wholesale market is effected via the power exchange Nord Pool, which facilitates trade between producers and traders.

Many new players have entered the electricity market since the liberalisation.
The most important step towards the free electricity market was taken in 1999 with an EU directive on full liberalisation of electricity markets. This led to the unbundling of the transmission grid from electricity generation. The grid is now independent, and all electricity market players have equal opportunity to use it.

Further political changes are expected in the future. They will produce more market-based solutions and increase the integration of the Nordic electricity market into the EU market.