5s - Future Electricity Markets

The ambitious targets for the increased share of renewable energy in the energy mix in the future imply a paradigm shift in the design and management of power systems. The changes to our production and consumption of electricity create needs for new hardware on the one hand but also a reconsideration of the ways, in which we price and trade electricity. Ideally, the electricity market of tomorrow will be able to handle the dynamics and uncertainty linked to generation from renewable energy as well as flexible demand. These electricity markets should also redistribute welfare gains fairly, while they should create the necessary pay-off for the energy producers to make appropriate investments. The 5s project seeks to develop the scientific framework and propose technical solutions for such an electricity market. This will provide the Danish (and other) energy system with the right market mechanisms to handle 50 % or more renewable energy.