A newly established countertrade agreement between Denmark and Germany has effectively minimized the curtailment of Danish wind turbines while significantly lowering electricity prices, reports Energinet.
Previously, Danish turbines faced annual curtailment of up to 1000 gigawatt-hours (GWh) due to limitations in the German electricity grid. Since the full implementation of the countertrade model in July 2023, curtailment of Danish turbines has nearly ceased, resulting in notable price reductions.
Under this arrangement, managed by German TSO TenneT, the need to regulate Danish electricity production shifted from Denmark's market to a cross-border intraday market. This transition has expanded market participation and liquidity.
Initially, the price difference between Denmark's regulating power market and the average spot price of electricity was around €42/MWh in early 2023. By the second half of the year, this gap narrowed to €15.9/MWh, decreasing even further to €3.4/MWh by early 2024.
