Endesa Trading, a unit of Spanish energy firm Endesa, has acquired 30MW in the virtual generation capacity auction carried out by E.ON in Germany - the first of its kind to be held in the country.
E.ON has auctioned a total capacity of 250MW for 2008 and 2009. Endesa Trading obtained 30MW for each year, the maximum amount that any one bidder could acquire.
This new product will give Endesa a more flexible energy supply to service its customers in Germany, where the group has no generation assets. Furthermore, the new capacity will allow the group to optimize the management of all operations carried out by Endesa at interconnections all over Europe.
The main characteristic of this new product, and the one that sets it apart from other similar offers, is that the option is exercised at a variable benchmark price indexed to coal and CO2 prices.