Elsag Genoa, Italy and Lexington, Mass., Feb. 26, 2002 — Rome-based Gestore del Mercato Elettrico, the Italian power exchange, has selected US-based Excelergy Corporation to provide the operating software to run Italy’s newly competitive power exchange.
The multi-million dollar agreement, awarded to a consortium that includes Excelergy, Italian systems integrator Elsag SpA and Amsterdam-based information technology consultant Getronics, was made in advance of the opening of the competitive Italian energy market scheduled for October 2002.
“We searched worldwide for the most advanced software technology available, and we determined Excelergy’s best-in-class product suite offers the most cost-effective, proven, open technology that could handle the volume and complexity of the power market transactions we anticipate,” said Fabio Chiusa, marketing director of Elsag.
“Judging by Excelergy’s success with America’s largest energy trader and generator, as well as its proven ability to deploy quickly anywhere in the world, we concluded Excelergy’s products matched our vision and aggressive timetable for our newly competitive wholesale market.”
Excelergy Energy Trading(TM), one of several Excelergy products being combined for the Italian market, is deployed at North America’s top energy trader and generator, American Electric Power. Gestore del Mercato Elettrico (GME) is implementing a program that will introduce competition to the provision of electricity in Italy through a national power exchange.
The power exchange will initially open to generators, distributors and wholesalers and extend to eligible customers over time. The power exchange will create day ahead, intra-day, reserve and balancing markets to facilitate competition and lower energy prices while maintaining a reliable and stable power grid. Elsag will provide project management and systems integration and security services for the phased implementation. Getronics will provide all hardware systems to be utilized by the consortium.
“Excelergy’s products were chosen for four reasons,” said Elsag’s Chiusa. “We needed a flexible, scalable engine for the millions of transactions that will be exchanged in this unique marketplace, a secure online portal for market participants to access on demand, a powerful physical scheduling system for efficient production planning, and an accurate settlement system to manage the billing among market participants.”
Chiusa continued: “Excelergy’s products provide all this functionality to address Italian-specific market rules and requirements. Their performance, flexibility and secure accessibility will ensure this real-time market runs smoothly and efficiently.”
Once fully operational in Italy, Excelergy’s product suite will execute the following functions: 1) manage the power bidding process among energy generators, distributors, importers, wholesalers and eligible customers; 2) establish the market clearing price; 3) schedule the delivery of power; and 4) settle market operations.
“This is a watershed moment for Excelergy,” said Bill Mahoney, president and chief executive officer of Excelergy Corporation. “In addition to being one of our largest agreements to date, it firmly establishes us as a major software provider to the global wholesale energy software market. We are pleased to work with Elsag to deliver our products to GME, particularly given Elsag’s unparalleled experience in designing and implementing mission-critical solutions for the Italian markets in energy, defense, banking and postal operations. This agreement is exactly in line with our long-term corporate and product strategies, and we look forward to building on this implementation to gain new agreements with other regional and national market operators in Europe and around the world.”
Serving more than 57 million people, the Italian power market will manage a capacity of more than 72,000 megawatts of electricity from approximately 1400 generation facilities and 9700 kilometers of transmission lines. The Italian power market also interconnects with its counterpart systems in France, Switzerland, Austria, Slovenia and Greece.
About Elsag SpA
Genoa-based Elsag SpA is Italy’s information technology (IT) systems integrator. Elsag designs, implements and manages software and hardware solutions to improve business processes in banking, energy, manufacturing, postal operations and other industries.
Elsag’s mission is to satisfy the business needs of large companies and organizations who place a premium on technical excellence and superior performance when selecting solutions to optimize their business processes. More information is available at www.elsag.com.
About Excelergy® Corporation
Excelergy is a provider of open co-action software products – putting “action” at the heart of “collaboration” – to meet restructuring market needs worldwide. Excelergy delivers open coaction through three core product lines: Excelergy eXACT® for inter-company collaboration, the Excelergy Advanced Business Package(tm) for intra-company collaboration, and Excelergy Energy Trading(tm) for the straight-through processing of wholesale energy business processes.
These products are based on an open, object-based, Web-architected, native XML technology platform. Excelergy’s North American headquarters are located in Lexington, MA, with its European headquarters in Bristol, England and its Asia-Pacific operations in Melbourne, Australia. More information is available at www.excelergy.com.