CRA International designs and conducts Germany’s first virtual power plant auction

Boston, MA, Feb. 21, 2006 — CRA International, a provider of economic, financial, and management consulting services, announced that it played a central role in Germany’s first internet auction of a virtual coal-fired power plant.

CRA’s client, RWE Power AG, successfully auctioned generating capacity of 200 MW of secure output to European municipalities, industrial customers, electricity generators, and traders. Winning bidders can call up electricity at any time over a specified period as if they own the power plant, but face none of the risks associated with ownership.

CRA was responsible for the auction design, rules, and implementation. CRA also held bidder information sessions, hosted the auction at its internet auction site, and concluded contracts between RWE and the winning bidders at the close of the auction.

“After auctions in France, Belgium, the Netherlands, and Denmark, the RWE auction continues the trend in Europe to sell capacity through virtual power plant auctions,” said James C. Burrows, CRA International’s president and CEO.

An auction for the delivery period 2007-2009 offered two products for sale: 100 MW referenced to the index for hard coal published by the German Federal Office of Economics and Export Control (BAFA), and 200 MW referenced to the API#2 coal index. In the end, 200 MW indexed with API#2 for the 2007-2009 period was sold, yielding a price of almost $300,000/MW. A second auction, for the delivery period 2010-2012, tested receptivity to new, innovative products.

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