The aim of the Wilmar project is to investigate technical and economical problems related to large-scale deployment of renewable sources and to develop a modelling tool that can handle system simulations for a larger geographical region with anInternational power exchange. Wilmar is an abbreviation of “Wind Power Integration in Liberalised Electricity Markets”. The project was started in 2002 and is funded by the EU’s 5th Research programme on energy and environment. Risø National Laboratory isco-ordinator of the project and partners include SINTEF, Kungliga Tekniska Högskola, University of Stuttgart, VTT, Nord Pool Consult, Technical University of Denmark, ELSAM A/S and Elkraft-System A/S. This report is Deliverable 3.2 of the project. Thereport describes the power markets in the Nordic countries and Germany, together with the market models to be implemented in the Wilmar Planning modelling tool developed in the project. The starting points for the design of the power market models are thefunctioning of the electricity markets in Germany and in the Nordic countries, Denmark, Finland, Norway and Sweden. These two power markets are thoroughly described in the first part of the report. A qualitative description of the power market models usedin Wilmar is given in the second part, though the mathematical presentations of the models are left out of this report and will be treated in a later publication from the project.