EDF Enchère de capacité
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- overview
overview
EDF offers access to 5,400 MW of generation capacity in France, pursuant to its Undertaking given to the European Commission following EDF's acquisition of a controlling interest in the German electricity utility EnBW in 2001.
This capacity can be acquired by generators, suppliers and traders already operating in France and by those who wish to enter the market, through quarterly auctions conducted on the internet.
EDF sells this generation capacity in the form of contracts specifying both an energy price and a capacity price. The energy price is fixed in advance and remains fixed for the duration of the contract. The capacity price is determined by the auction mechanism. This capacity price is to be paid every month for each MW purchased, for the duration of the contract.
Therefore, the buyers of these options have a drawing right on EDF generation capacity at a pre-defined variable cost, without having to assume all of the engineering and operational risk of plant ownership. Thus the name of VPP (Virtual Power Plant) was given to the products sold.
The only difference between the two types of products offered – base load VPP and peak load VPP – is the energy price. Both base load and peak load VPPs are offered in a variety of durations from 3 to 36 months. In addition the base load VPP is available as a 48 month duration product.
In total, EDF is making available 4,400 MW of base-load VPP and 1,000 MW of peak-load VPP.
The auctions are being conducted as multi-round ascending price clock auctions offering all products simultaneously (3, 6, 12, 24, 36 and 48 months for base load VPP and 3, 6, 12, 24 and 36 months for peak load VPP), to facilitate buyers acquiring the appropriate portfolio of contracts for their needs.
Up to now, at each auction, around 30 energy players have competed and typically around 20 of them have emerged as successful purchasers.
In line with its Undertaking EDF ramped up the capacity offered from the first auction in September 2001 and since November 2003, EDF has made available to competitors the full volume of the release programme, representing approximately 40 TWh per year.
Parties wishing to obtain further information on the EDF capacity auctions and potentially interested in applying to qualify for participation in the next auction are encouraged to register their interest as soon as is practicable and in any case sufficiently in advance of the deadline for application to qualify for that auction.
Registered parties will have access to an Information Memorandum describing the proposed arrangements for the coming auction, the quantities of generation capacity that are being made available, and the requirements for qualification. This Information Memorandum is available on the Members' section of this website.
EDF is being advised by Frontier Economics, and the auction is administrated by IBM.
In the event of technical difficulties communicating with the above, please contact:
EDF Auctioneer
Fax : +33 (0)1.43.69.22.99
