Elsam has just completed its first auction of virtual Power Plant capacity, which is the first auction of its kind in the Nordic electricity market. 250 MW of capacity was sold for nomination of power in the first quarter of 2006. 6 companies successfully purchased Virtual Power Plant capacity in the auction.

In the auction, a total Option Price of 69,351 EUR/MW was determined for the right to use the capacity in the first quarter of 2006. Owners of Virtual Power Plant Capacity pay an additional set price of 13.26 EUR/MWh when electricity is supplied.

“This is the first time virtual power is offered for sale in Denmark, and I am pleased with the interest shown in participating in the auction, Leif Winum, Commercial Director of Production Planning and Trade in Elsam says and continues, we see virtual power as a new and exciting product on the electricity market and we believe that it will be a success when the players discover the possibilities of disposing of the production capacity”.

In connection with the acquisition of NESA the Danish Competition Authority instructed Elsam to offer a virtual power plant capacity of 250 MW in 2006, 500 MW of 2007 and 600 MW as of 2008. The purpose of virtual power is to increase the competition on the electricity market. Through an auction other players acquire the right to supply electricity from Elsam’s power plants, and thus Elsam cannot dispose of the capacity already auctioned

The next auction is scheduled for the first quarter of 2006. 250 MW will again be offered for sale.

In cooperation with the Danish Competition Authority Elsam appointed Deloitte as Trustee, to ensure the smooth operation of the auction. The auction itself takes place on the internet through the Nordic Power Exchange, Nord Pool, in Oslo. Bidders’ details are kept confidential from each other and from Elsam.

The virtual power auction is not an isolated Danish phenomenon. Similar auctions have already been held in France, Belgium, and the Netherlands.

To find out more about Elsam’s auction of VPP visit www.elsamvpp.com

For further information please contact:

Chief Executive Officer of Elsam, Niels Bergh-Hansen, phone +45 2040 4125

Leif Winum, Commercial Director of Planning and Trade in Elsam, phone +45 76 22 21 01