Optimal Auctions Electricity Auctions - $113,000,000,000 in Electricity Sold
Optimal Auctions’ electricity Auctions have been used to sell $113,000,000,000 worth of electricity, with nearly all of our customers coming back year-after-year because they are so happy with the results. Our electricity auctions use our Clock auction software to run a Simultaneous Descending Clock Auction (SDCA). It allows dozens of products, each with an unlimited number of tranches to be sold, and it allows hundreds of simultaneous bidders. In addition to running electricity auctions, our software can be used to run similar auctions, such as power auctions, utility auctions, or natural gas auctions.
- New Jersey BGS, 2002 - 2018
- Pennsylvania Penelec Electricity Auctions, 2009 - 2012
- Spanish Capacity Auctions, 2007 - 2008
- Public Utility Commission of Texas Quarterly Capacity Auctions, 2002 - 2006
- Illinois Annual Capacity Auctions, 2004-2007
Optimal Auctions Electricity Auctions - Cheaper, Faster, Better-Tested - Guaranteed
Our Electricity Auctions are incredibly configurable, allowing us to meet any rules or regulations that you may have with your electric auction. In fact, there are over 195 settings in our auction software, which means no matter the complexity or requirements of your electric auction, you can feel assured that Optimal Auctions can deliver a software solution that will be cheaper, faster, and better-tested than any of our competitors. We guarantee it!
Our Software Makes Everything So Easy, Why Try to Create Your Own?
We would be incredibly happy to show you a demonstration of our software. We are confident that once you see how the software works, and how easily it controls every aspect of your auction, you will never go back to using an Excel spreadsheet. Our software takes care of everything you could imagine - exact timing of rounds, ensuring bids are received in time, ensuring bids adhere to eligility rules, and thousands of other things. Plus, it runs right in your browser, so anyone with a desktop, laptop, or even a smartphone can use our software. Your bidders can simply log on and bid - there's nothing to install!
Call Now For a Demo - 512-947-8273
We will be happy to talk with you about your auction software needs, and will help answer any questions you might have. We firmly believe that we provide the best software in the world for running an electricity auction. You'll learn the same thing all of our recurring clients have found - once you use our electricity auction software, you'll never want to use anything else again.
How an Electricity Auction Works
An Electricity Auction proceeds in a series of rounds. When a participant bids, they are stating the number of "tranches" (quantity) they are willing to supply of each product at the prices in force at that point in the auction. A price for a product is an amount (e.g. in ¢/kW hour) paid for each unit of account (e.g. kW hour) of a "product" (e.g., full requirements service) purchased. The auction is called a Simultaneous Auction because products for all zones or sellers are auctioned at the same time and bidders can switch between products as the relative prices develop. The auction is a descending auction because the going prices for “over-subscribed” (supply in excess of demand) products decrease as the auction progresses from round to round. Participants reduce the quantity (e.g. number of tranches) they wish to supply as the going prices decrease. The auction closes when the total number of tranches bid on each product is less than or equal to the auction volume (also known as tranche target). The auction’s starting prices are the going prices in the first round. The final auction prices are the clearing prices at the auction close. Those bidders holding the final bids when the auction closes are the winners. The auction is characterized as being a clock auction because typically the prices of all the tranches of the products “tick” down together in decrements determined by an algorithm.
The auction format to run a power auction, a gas auction, a natural gas auction, or a utility auction is the exact same as the electricity auction. No matter the type of auction you want to run that's related to power, gas, or electricity, Optimal Auctions has the best software solution for you.