Field in Denmark at sunset with wind turbines

AFRY supports Danish Energy Agency in designing the future Danish electricity market

Written by Abigail Speak

Since the Danish government announced their economy-wide ambition to reduce greenhouse gas emissions to 30% of 1990 levels by 2030, Danish authorities have worked on an improved electricity market design to support the realisation of these ambitious targets – called Market Model 3.0.

The Danish Energy Agency has published the Market Model 3.0 recommendations, based on fundamental principles that secure socio economically efficient balancing of the power system going forward:

  • Market based solutions
  • Energy only market model – i.e. investments and flexibility are incentivised by price signals in the electricity markets
  • Common European and Nordic electricity market places
  • Efficient separation between natural monopolies and market based activities

AFRY supported Market Model 3.0 together with MORE Consulting in the initial phase when the fundamental principles were being developed, and as such together with Danish Energy Agency laid the cornerstone for the new market design.

The report can be accessed here: