QVARTZ and Copenhagen Economics have supported Energinet.dk in developing Market Model 2.0, an analysis containing 24 recommendations for future-proofing the electricity market. More than 20 energy companies, consumer organisations and government authorities have been involved in the analysis and development of solutions.
Today, estimates are made daily regarding how much electricity households and businesses are likely to consume the following day, and the electricity generation is matched to the expected demand. In the future, however, most of the electricity will come from intermittent renewable energy sources like wind turbines and solar panels rather than conventional thermal power stations, and thus generation rather than consumption will be the defining factor. Therefore, there is a need for both minor and more fundamental changes to ensure a domestic and international well-functioning electricity market in the years to come, such as new price signals, new services, new technology and new ways of ensuring security of supply.
And Denmark is not the only country facing these challenges. A number of our neighbouring countries are also working on how to adapt their electricity markets to make them future-proof and to ensure stable supply. With EU’s Energy Union and recent policy developments in the key European electricity market, common cross-border solutions will continue to play a larger role to ensure an efficient transformation of the energy sector.
Three main issues and focus areas have been identified on the basis of the analysis. Read the full report here to find out what they are.