CNE issues definitive bidding rules for 2023/01 electricity supply auction

This is an automated translation of the original release published in Spanish.

PRESS RELEASE from CNE
July 10, 2023

Through the issuance of Exempt Resolution No. 284, the National Energy Commission (CNE) approved the final bases of the National and International Public Tender for the Supply of Energy and Electric Power to Supply the Consumption of Clients Subject to Price Regulation, Supply Tender 2023/01.

This bidding process contemplates auctioning a total of 5,400GWh, distributed in 2 Supply Blocks of 1,800GWh and 3,600GWh each, with the purpose of supplying the energy needs of regulated customers of the National Electric System, starting in 2027 and 2028 respectively.

In addition, this bidding process incorporates a zonal segmentation with a border in the uncoupled bars of the National Electric System, giving bidders the freedom to bid for any of these zones and reducing nodal risk in the Short-Term Market.

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One of the most relevant aspects that was incorporated into the final bidding conditions is a modification to the mechanism for promoting non-variable storage and renewable energy projects, where through said modification the universe of projects that can qualify for this benefit was expanded, thus including hydraulic projects that can provide flexibility to the system.

Other incorporated changes are considering that the storage must be at least 4 hours long to access the indicated incentive, in addition to the transfer of Systemic Costs, which includes the possibility of incorporating other future systemic costs that may appear, with prior approval from the CNE.

The Executive Secretary of the CNE, Marco Antonio Mancilla, highlighted the approval of the final bases for the bidding process. “This work considered several changes that are in line with the commitment of the Initial Agenda for the Second Period of the Energy Transition, incorporating important novelties for the incentive to storage media and renewable energies with storage capacity, renewable energies with capacity regulation, and basic renewable energies without polluting emissions, which deepens the decarbonization process of the national energy matrix and contributes to the flexibility and security of the electrical system.”

Schedule

The definitive bases establish a new schedule, where the main milestones are:

Call for National and International bidding: July 14.

Consultation period: Until 5:00 p.m. on Friday, September 15, 2023.

Proposal Submission Date: Wednesday, December 13, 2023, between 9:00 a.m. and 1:00 p.m. in a place that will be communicated in a timely manner.

Opening and Inspection Date of the Economic Offers and opening of the Reserve Price: Thursday, January 4, 2024, starting at 11:00 a.m. in a place that will be communicated in a timely manner.

Public Award Ceremony (in the event of award completion in the First Stage): Wednesday, January 10, 2024.