Projection of electricity market prices

Denmark | January 2021 - March 2021

Ea Energy Analyses has made a projection of electricity market prices towards 2050 for the DK1 bidding zone (Western Denmark) for AffaldVarmeAarhus (Danish waste, recycling, and heating company).

The price prognosis was based on a reference projection reflecting a most likely development considering political decisions on the transition of the energy systems in Denmark and neighbouring countries.

The reference projection was supplemented by two alternative projections addressing a number of factors that could potentially have large effects on the future electricity prices. These served as a robustness check of the reference and contributed to creating a likely range of outcome for the electricity market prices.

The electricity prices were calculated by using the electricity and heat market model Balmorel and was based on a year of normal weather conditions.

The project ran from January to March 2021.