During the internship at Niebuhr Gears A/S it was discovered, that the company is paying too much for their electricity in relation to the current prices found at Nord Pool Spot. Therefore it was decided to look deeper into the Danish electricity market, and find out what and who has an influence on the price. It was found that many factors, including prices on raw materials for the production of electricity and economical ratios for EU, has an influence on the final price of electricity. It was found that it is difficult to see through the Danish electricity market for the Danish costumer’s because the market is complex and contains of a lot of different players. Therefore it is difficult to choose the cheapest electricity supplier. The project contains therefore a study of the physical and economical players, and a visualisation of the supply-chain on the market.
During the analysis of Niebuhr’s consumption pattern and prices, it was found that the company can take advantage of moving parts of their production to the night, because the electricity usually is cheaper at this time of the day.
The project is dealing with two extra companies, who have a different consumption pattern. The pattern is analysed for all of the three companies and ends up with suggest of improvements, which will make the companies able to select the most economical, optimal product, choosing between the fixed-price-product and the variable product on spotprices.
This analyse of the three companies indicates which level the companies fixed-price-product should have, to make this type of product economical preferable.
Furthermore the analyse shows that the spotprice-product’s worst- and best case, which indicates the product’s extremes, and therefore can help other companies make the right choice, when they are deciding on which product of electricity is most preferable for them.
Finally the project contains a study of the future Danish electricity market, which is important to help these companies make the right decisions from now on and in the future.
The study is dealing with the Danish government’s energy strategy, which provides an implementation of renewable energy and goals for reductions in the energy consumption. These elements of the strategy are central for the Danish costumer’s because the price on electricity varies by supply and demand.