This analysis is part of the Market model 3.0 project. In Market model 3.0, it is to be evaluated how the market model for electricity in Denmark and the Nordics handles the necessary transition towards a low emission society. In the coming years a number of challenges and new opportunities are expected to influence the market significantly. The Danish and Nordic electricity market must be prepared to facilitate the green transition and handle challenges in the best possible way, by sending the right price signals.
This analysis lays the foundation for the coming work in Market model 3.0 by defining basic ideas, concepts, and success criteria, describing the present market model for electricity and identifying market imperfections and other conditions which may challenge the market models success in the future.
Thus the purpose of this task is to point out the risks that may arise with the chosen energy-only model, and then deliver input for a discussion on how these risks are best mitigated in a Danish context.