Denmark’s Electricity Prices Drop 7% in July

Edward Walgwe

July 31, 2026
3:03 pm

Denmark’s electricity prices fell seven percent in July, giving EV drivers far more cheap charging hours and a record number of negative-price hours compared to last year.

Electricity prices in Denmark dropped noticeably in July after an expensive June. The average wholesale price in Western Denmark fell from 0.82 kr/kWh in June to 0.76 kr/kWh in July. Eastern Denmark saw a similar drop, from 0.81 to 0.77 kr/kWh.

For EV drivers, the message from Norlys is clear: July was a great month to charge at home. As reported by Norlys, the cheapest hours in the middle of the day saw prices drop to around 0.18 kr/kWh. That’s pennies compared to what we paid in spring.

Negative Prices Hit Record Levels

Western Denmark recorded 49 hours with negative electricity prices in July, compared to just 12 hours in July 2025. Eastern Denmark had 10 negative-price hours this year versus four last year. When prices go negative, producers essentially pay to offload surplus power.

Ellen Trolle, director of Norlys’ charging business, says intelligent charging made all the difference. Customers who switched on smart charging let the system handle everything. The technology monitored prices automatically and charged the car when electricity was cheapest.

This is the payoff for living in a country where renewable energy dominates. Wind and solar production surged in July, particularly during midday hours when demand was low. The system couldn’t absorb all that green power, so prices plummeted.

Higher Than Last Year, But Peaks Were Lower

Despite the July dip, average prices remained higher than July 2025. Western Denmark was up 16 percent year on year. Eastern Denmark saw prices nearly 20 percent higher. But peak prices told a different story.

The highest hourly rate in July 2025 hit around 3.55 kr/kWh. This year, peaks only reached about 2.30 kr/kWh. That’s a significant difference if you’re unlucky enough to charge during the expensive hours.

Trolle emphasizes the importance of timing. “July is a good example of how important solar and wind production is for electricity prices,” she says. When renewable energy floods the grid, it pushes prices down hard. Sometimes it even makes them negative.

Why This Matters for Expats with EVs

I’ve lived here long enough to know that Denmark’s electricity market operates on different rules than most places. If you drive an EV and you’re still on a fixed-price contract, you’re leaving money on the table. Switching to a dynamic pricing plan tied to hourly rates can save you real money, especially in months like July.

But there’s a catch. Not everyone benefits equally. You need a smart charging setup or at least the willingness to plug in during off-peak hours. That means charging overnight or during windy afternoons. For families who drive predictable distances and can plan ahead, the savings add up. According to Forbrugerrådet Tænk, a typical EV driver covering 15,000 km annually could save 1,000 to 1,500 kr per year with hourly pricing.

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What’s Driving the Negative Prices?

Negative prices happen when supply overwhelms demand. July brought plenty of wind and full reservoirs in Norway and Sweden. Hydropower production was high, wind turbines spun constantly, and industrial demand stayed moderate. Households weren’t heating, so consumption was low.

The grid couldn’t store or export all that surplus energy. Prices crashed. For producers, it’s cheaper to pay someone to take the power than to shut down and restart production. For consumers with flexible contracts, it’s free electricity or better.

Denmark now has over 250,000 registered EVs, and that number is climbing toward the government’s goal of one million by 2030. Each EV uses roughly 2,000 to 3,000 kWh per year. As the fleet grows, so does the potential for flexible charging to stabilize the grid.

Not Everyone Wins

Fixed-price customers saw none of July’s benefits directly. Their contracts shield them from hourly swings, which means they miss both the highs and the lows. Energy companies pocket the difference when wholesale prices drop, and customers only see savings if the company lowers prices at renewal.

This creates two tiers of consumers. Tech-savvy, financially secure households with EVs and heat pumps maximize the system. Everyone else gets less. Organizations like Ældre Sagen and Forbrugerrådet Tænk have warned that this dynamic pricing model risks leaving vulnerable groups behind.

The Bigger Picture

Denmark is ahead of most of Europe in renewable energy, but the transition brings volatility. Negative prices will become more common as wind and solar capacity grows. The EU’s latest electricity market reforms encourage flexible consumption, and Denmark is leaning in hard.

But flexibility requires infrastructure. We need more batteries, more smart devices, and more consumers willing to shift their habits. EVs are a key part of that equation. They’re mobile batteries that can soak up cheap power during surplus hours.

The question is whether the benefits will spread broadly or concentrate among early adopters. Right now, if you drive an EV and you’re willing to engage with hourly pricing, Denmark’s electricity market rewards you. July proved that once again.