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On 24 March, MEFF, a BME subsidiary, managed the Seventh Spanish VPP Auction in collaboration with IBM.
The Royal Decree 324/2008 establishes that Endesa and Iberdrola must sell energy products on a wholesale basis. In 2007 and 2008 six similar auctions were held. The sixth and seventh auctions have been managed by MEFF in collaboration with IBM, following its appointment by the Spanish power sector watchdog, the Comisión Nacional de Energía (CNE).
In the seventh auction, bidders were allowed to buy 2,230 MW semester, comprising 1,700 MW semester of the base-load product and 530 MW semester of the peak-load product. The energy linked to both products will be delivered as from 1 April 2009 with settlement being financial.
The strike prices for the auction, fixed by the Ministry of Industry’s Directorate General for Energy Policy and Mining, were as follows: 22 €/MWh for the base product and 29 €/MWh for the peak product.
The auction was carried out on an ascending clock and multi-round basis, with a simultaneous auction of 4 products classified in two groups. The auction, which was completed in the ninth round, was entirely carried out on the Internet with bidders participating from a number of EU countries.
The resulting volumes and prices, in €/MW/month, are as follows:
| Six-month Product | One-year Product | Aggregated volume | |||
| Price | Volume allocated in auction | Price | Volume allocated in auction | ||
| Base Product | 10,217€ | 220 MW | 12,062€ | 270 MW | 760 MW/6month |
| Peak Product | 2,740€ | 240 MW | 3,455€ | 130 MW | 500 MW/6month |
On aggregate, 1,260 six-month equivalent MW were allocated.
In the seventh auction there were 22 participants, of which 12 received the allocations. The CNE has verified the auction process has taken place on an objective, competitive and non-discriminatory basis.
Companies interested in future auctions can register on www.subasta-epe.com in order to receive more information.
