Understanding how electricity pricing works in Denmark is key to understanding why Hybird Optimisation can save money.
The Nord Pool exchange
Denmark's electricity is traded on the Nord Pool power exchange, which serves the Nordic and Baltic countries as well as parts of continental Europe. Prices are set through a day-ahead auction: every day, supply and demand bids are matched for each hour of the following day, producing 24 hourly spot prices.
This means the price of electricity changes every hour. The price at 3 AM may be very different from the price at 5 PM.
What drives price changes
Spot prices are influenced by:
Demand:Higher demand (cold winter evenings, weekday mornings) pushes prices up. Lower demand (nights, weekends, holidays) brings prices down.
Renewable generation:When wind and solar output is high, supply increases and prices tend to fall. Low wind days push prices up.
Interconnectors:Denmark is connected to Norway, Sweden, Germany, and the Netherlands. Imports and exports through these connections affect local prices.
Fuel costs:When gas, coal, or carbon prices rise, the marginal cost of non-renewable generation increases, pushing spot prices up.
Typical price patterns
In a typical Danish day, prices tend to follow a pattern:
Cheapest:Late night and early morning (roughly 00:00-06:00), when demand is lowest.
Moderate:Midday, especially when solar output is high.
Most expensive:Late afternoon to early evening (roughly 16:00-20:00), when household and commercial demand peaks.
However, this pattern varies significantly by season, weather, and market conditions. Winter prices are generally more volatile than summer prices.
What it costs
For reference, the average spot price in Denmark in 2025 was approximately 2.50 DKK per kWh including taxes. But individual hours ranged from near zero (or even negative during periods of high renewable output) to several DKK per kWh during peak demand.
-
-
-
-
-
-
Need help?
Technical support: [email protected]
Billing and invoicing: [email protected]
Sales and partnerships: [email protected]
Phone: +45 3020 4900