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Project Description

The project aims to increase the link between production and consumption in different types of supply by increasing the level of knowledge about the electricity market for the players who are going to drive the green transition. In the smart energy system, the electricity market will be the focal point for the interaction between production and consumption and for the different modes of supply. Most smart energy technologies (heat, water, gas, electricity, etc.) will participate in the smart energy system by trading electricity and electricity power through the electricity market.


In the project, the current version of the Market Simulator will be further developed to become an easily accessible market analysis tool. Today there are a number of different market analysis tools (Balmorel, SIFRE, Energy Plan, etc.), but the models are only available to experts. What is innovative in this project is that we will develop an analysis tool that non-experts can easily operate and that can give them knowledge about the most important market mechanisms and how their proposals for new smart energy technologies are likely to be able to cope in the future electricity market.


The existing version of the Market Simulator has been developed in cooperation between the Strategy Room and the Insero. The goal of the development has been to create an educational tool that can be used by students and students to gain hands-on experience with the electricity market. The aim has not been to create an analysis tool that can be used in the development of decision-making bases for investment. The development has succeeded, and the market simulator is now used at SDU, DTU and on a number of courses for employees in the energy sector.


In the project we will connect the Market Simulator to the historical market data that lies with Nord Pool, Energinet, etc., so that users will have much easier time analyzing the historical market problems that their technologies can help to solve.


The current version of the Market Simulator only measures one hour at a time. In the project we will further develop the model to be able to make annual analyses and analyses 20 years in the future. This will not compromise the availability of the model, as the user interface will remain very simple.


The figure at the top shows an image from the Market Simulator, where the model calculates the system price at a given hour in the Nord Pool area.


The figure also shows that the user can easily change fuel prices, CO2 prices, wind power production, etc. and see how these changes affect the market price.


The Market Simulator includes all types of electricity and cogeneration production technologies. The model will be further developed to describe the consumption side so that it also contains relevant technologies. Currently, consumption is simply described as an MWh value per hour.

Project Summary
Project period January 1. 2019 to December 31. 2020
Total budget 1.046.000 DKK
Funding agency Energi-, Forsynings-, og Klimaministeriet
Organization managing the project Stratefirummet ApS
SDU project manager Bo Nørregaard Jørgensen
Additional partners - Danish Energy Economics ApS
- SDU Center for Energy Informatics
- Innovationsnetværket Smart Energy
- Forsyningstilsynet

Last Updated 06.01.2023