Chile power supply call attracts 29 bidders

After several COVID-related delays, Chile has received bids to supply distributors starting in 2026 as part of its 2021 power supply call.

A total of 29 companies submitted bids, said energy sector regulator CNE, seeking to supply the 2,310GWh/y to be awarded.

The companies include Enel Generación Chile, Acciona Energía, Sonnedix, Atlas, Colbún, Canadian Solar, Likana and Pacific Hydro. The full list can be accessed here.

As in previous tenders, bidders can be awarded supply blocks through a mechanism labeled ‘new projects’. Under the scheme, companies can be awarded blocks they intend to supply with projects yet to be built.

Over the past half-decade, the mechanism has become one of the biggest impulses for clean energy projects in Chile, as renewable project developers can compete on equal footing with other technologies for long-term supply contracts. For this call, the PPA contract terms were reduced from 20 to 15 years.

Other changes compared to previous tenders include the possibility of extending the supply contract for three additional years if a company is unable to sell all the contracted power during the 15-year period and measures that allow the participation of projects with a storage component.

The industry follows the process closely, as award prices will be scrutinized to see whether they are higher or lower than previously awarded figures. Since 2012, Chile has awarded consistently lower average prices, from US$131/MWh to just US$33/MWh in 2017, when the last tender was conducted (see graph below).

BNamericas with CNE data

CNE has said lower awarded prices are expected to lead to a 20% drop in end-user power prices over the next decade.

The offers will be opened on August 25, CNE said, and the winners named on August 27.