The electricity sector is currently undergoing major changes. Changes, which are increasing in magnitude over the next 5-15 years as the share of intermittent renewable energy surges. In light of these changes, Energinet.dk initiated an analysis of the next generation electricity market design (Markedsmodel 2.0), and commissioned Copenhagen Economics together with Quartz + Co to provide analytical support.
The analysis provides recommendations on three overall elements:
- In order to combat a potential security of supply problem after 2025, a strategic reserve is recommended as the preferred solution.
- In order to increase flexibility in the electricity market, a number of regulative changes are proposed including moving the market for trading closer to realtime and raising the price ceiling.
- In order to ensure that critical technical services (ancillary services) are sufficiently provided, Energinet.dk aims to make such services more market-based where relevant.