The acquisition will afford ENDESA access to electricity capacity in Germany where it has no physical assets, allowing it to service customers in that country and optimise it pan-European interconnection management operations.

Endesa Trading has acquired 30MW in the virtual generation capacity auction carried out by E.ON in Germany - the first of its kind to be held in that country.

E.ON has auctioned a total capacity of 250MW for 2008 and 2009. Endesa Trading obtained 30MW for each year, the maximum amount that any one bidder could acquire.

This new product will give ENDESA a more flexible energy supply to service its customers in Germany, where the group has no generation assets. Furthermore, the new capacity will allow the group to optimise the management of all operations carried out by ENDESA at interconnections all over Europe.

The main characteristic of this new product, and the one that sets it apart from other similar offers, is that the option is exercised at a variable benchmark price indexed to coal and CO2 prices.

Endesa Trading regularly takes part in virtual capacity auctions in Europe. In 2006, it executed 2,360GWh of VPP (Virtual Power Plants) in France and Denmark. It also takes part in interconnection capacity auctions in various European countries, managing 3,030 GWh in 2006, mostly between France and Italy.