23 November 2005 - Elsam has completed the Nordic electricity market's first auction of virtual power plant capacity with the sale of 250 MW to six companies.

The electricity capacity sold will be supplied in the first quarter of 2006. A price of just over €69/MW ($81/MW) was paid by the companies at the time of the auction. A remaining sum of €13.26/MWh will be paid when the capacity is supplied.

Leif Winum, commercial director of production planning and trade for Elsam was content with the interest shown in Denmark's first virtual power auction. He said: "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."

The Danish Competition Authority instructed Elsam to offer a virtual power plant capacity of 250 MW in 2006, 500 MW in 2007 and 600 MW in 2008. The move is designed to increase competition within the electricity market.

The next auction is scheduled for the first quarter of 2006, where another 250 MW will be offered for sale. The auction will take place on the Internet through the Nordic power exchange, Nord Pool, in Oslo. Bidders' details will be confidential from both each other and Elsam.