Chile enacts its largest ever power tender

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
Credit: SunEdison

Chile has received 84 domestic and international bidders with multiple renewable energy submissions in its latest power tender.

In its largest ever power tender, the Chile National Energy Commission (CNE) is looking to procure 12,430GWh of energy per year for 20 years covering 30% Chile’s energy demand from 2021. This power will be supplied across the SIC and SING grids in the North and Central regions of the country.

Bids are invited for the supply of energy in ‘time blocks’. For example, 'Supply block No 2-B' is for power supplied in the hours between 08:00 and 17:59. This policy has been praised for its acknowledgement of the intermittency of renewable energy sources.

Big name solar developers entering the tender included Acciona Energy, Solairedirect and Engie. The results of the tender will be published on 17 August.

The 84 bidders represented a significant step up from the 38 bidders in the previous auction in October 2015 where the government secured an average price of US$79.3/MWh – all from renewable energy projects.

Minister of Energy, Maximo Pacheco, said: “We are fulfilling our goal to shake up a market that was lethargic and had become accustomed to operating with few actors, like an exclusive club. The state has regained its coordinating role in the energy sector and today is able to harness the private impetus towards greater competition that will benefit families and SMEs with lower prices on account of light.”

Chile also recently passed a law involving a major upheaval of its transmission system that had been widely regarded as a critical hindrance to the deployment of renewables and the power sector at large. The power tender was actually delayed till July to ensure that the transmission law had been passed in time for the auction and thus give certainty to developers.

Solar power firms and some wind developers are already experiencing curtailment of their energy production in the north central regions of Chile, but many expcect the transmission upgrades to resolve the issue in the coming years.

Read Next

January 14, 2022
The US Department of Energy (DOE) has launched a “Building a Better Grid” initiative to catalyse the development of “new and upgraded high-capacity electric transmission lines” across the US under President Joe Biden’s US$1 trillion Bipartisan Infrastructure Law.
January 11, 2022
Algeria has launched a tender process to support the deployment of solar PV projects in the country with a total capacity of 1GW.
January 6, 2022
JinkoSolar has won a tender issued by the China Petroleum Engineering and Construction Corporation (CPECC), an affiliate company of the China National Petroleum Corporation (CNPC), for up to 1.85GW of high efficiency TOPCon modules
January 6, 2022
Chile has published details of its latest power auction, set to take place later this year and contract 5,250GWh per annum for 15 years.
January 5, 2022
Spain will allocate up to 140MW of distributed solar PV capacity in the country's next renewables auction, set to take place this April.
January 4, 2022
NTPC Renewable Energy (NTPC REL), the renewables arm of Indian state-owned power giant NTPC, has invited bids for balance of system (BOS) packages with land anywhere in India for 1000MW worth of projects within the Interstate Transmission System (ISTS) connected solar projects programme

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
January 26, 2022
Free Webinar
Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 8, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal