When purchasing Virtual Power Plant (VPP) capacity the buyer has a right, but not an obligation, to purchase power at a fixed price. Total capacity offered each year is 600 MW. Should the buyer decide to execute his option to “start” the virtual power plant, the power is delivered to the Denmark West (DK1) price area, high-voltage grid. The VPP system was established in 2006 by the competition authorities in Denmark to reduce DONG Energy’s market dominance in Jutland.

Four auctions a year

The VPP capacity is offered at four auctions each year. Each buyer can acquire a maximum of 50 % of the capacity offered. When using the VPP capacity the fixed energy price is paid. The price is fixed throughout the supply period, and is determined ahead of each auction. The price is calculated in EUR/MWh based on DONG Energy Power's most cost effective power plant in the DK1 price area and depends on fuel prices and exchange rates among other factors.

Nord Pool Spot acts as the technical auction enabler and provides the technical infrastructure for the auctions, which are administered by Deloitte.

Please find more information at DONG Energy.