By the end of the auction, the price had reached E78.70 per MWh for the base-load product for 2009. RWE said that E88.99 per MWh was the final price for the profiled product, which is a combination of base-load and peak-load power for 2009.

On the day of the auction, the base-load product was being traded at the European Energy Exchange for E79.30 per MWh. The next RWE power auction will be held in mid-October 2008.

At quarterly auctions until 2011, RWE will sell an annual capacity of 1,600MW from depreciated hard-coal and lignite power plants to European industrial customers for supply throughout the year following the auction. This is equivalent to a total volume of 46,000GWh, which is almost as much as RWE’s annual sales to industrial customers in Germany.

Andreas Radmacher, CEO of RWE Key Account, said: For many industrial customers RWE’s power auction has become an additional and innovative purchasing model.