The rights and obligations of grid companies and commercial players in the Danish electricity market are regulated by the market regulations.
The market regulations are guidelines that are necessary in order to ensure that the electricity market functions properly and that settlement is performed correctly. The market regulations deal with issues such as terms and conditions for change of supplier, daily handling of notifications, balance settlement and standards governing the transfer of data between players.
The market regulations are primarily aimed at balance responsible parties, electricity suppliers and grid companies.
The technical regulations are guidelines that are important in order to ensure the physical operation and system security of interconnected high-voltage grids. The technical regulations are primarily aimed at grid companies, plant owners and plant operators. International obligations in connection with the physical system operation have typically been implemented in technical regulations.
The technical regulations specify function requirements and principles for the entire power system, system properties for grid-connected plants and rules governing how to act to ensure stable, reliable system operation. They also specify the ancillary services which electricity-generating plants must supply to the grid, outline guidelines for the decommissioning of plants, assign responsibility for the provision of measurements for system operation purposes and the preparation of communication procedures - for day-to-day operation as well as alert states.
The regulations specify rules governing system operation.
Tender conditions for ancillary services
The tender conditions for ancillary services describe the requirements that a balance responsible party must meet in order to participate in the Danish market for ancillary services.
To sell ancillary services to Energinet the market player must conclude a master agreement with Energinet. As a prerequisite the market player must be a balance responsible party for production or consumption in Eastern or Western Denmark. Further the plants delivering the ancillary services must be approved by Energinet.
Rules on trade across borders - transmission rights
The transmission capacity via the 2 Danish-German borders and the internal border between West- and East Denmark (The Great Belt) is administered in co-operation with JAO.EU (Joint Allocation Office S.A.). Authorized market players can reserve capacity for trade over the borders at auctions offered in cooperation with JAO.EU. At the auctions the capacity offered is cross-border/cross-bidding area reservations, and the capacity offered is South/West bound as well as North/East bound. The capacity is offered as physical transmission rights (PTR).
The rules on the transmission capacity are the common European allocation rules for forward capacity allocation, Harmonised Allocation Rules (HAR) and rules for nomination of PTR.