Newsletter - 22 November, 2011 - Successful Virtual Power Plant Auction

DONG Energy Power has just completed the last of four auctions taking place in 2011 where two products were successfully sold:

3-months' product
100 MW delivered in the first quarter of 2012 was purchased by 3 companies. In the auction, an option price of 14.26 EUR/MWh (equivalent to a Total Option Price of 31,128 EUR/MW) was determined for the right to use the capacity in the first quarter 2012.

Owners of 3-months' Virtual Power Plant Capacity pay an additional set price of 35.69 EUR/MWh when electricity is supplied.

1-year product
200 MW delivered in the year 2012 was purchased by 6 companies. In the auction, an option price of 13.22 EUR/MWh (equivalent to a Total Option Price of 116,100 EUR/MW) was determined for the right to use the capacity in the year 2011.

Owners of 1-year Virtual Power Plant Capacity pay an additional set price of 35.33 EUR/MWh when electricity is supplied.

Next auction
The next auction is scheduled for 7 February 2012 where 100 MW is offered for supply. The 100 MW will be supplied in one product defined by a duration of 3 months, starting 1 April 2012.

In cooperation with the Danish Competition Authority, DONG Energy Power has appointed Deloitte as Trustee to ensure the smooth operation of the auction. The auction itself takes place on the internet through Nasdaq OMX Commodities in Oslo. The details of the bidders are kept confidential thus information is not made available or disclosed to the individual bidders or DONG Energy Power.

If you have further questions regarding the VPP auctions you are welcome to contact:

Market Operations, Lasse Pilsmark, phone +45 99 55 24 59
or
Market Strategy, Rasmus Bischoff Hemmingsen, +45 99 55 96 54