Chile: upcoming 2.2 TWh power auction to be held in November

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The Chilean energy regulator CNE announced that this year’s auction for large-scale power projects will contract 2.2 TWh, and not 2.0 TWh as previously announced.

Furthermore, the CNE said it will begin accepting applications for competing projects starting from October 11, and that on November 3 it will hold the public act of opening of the offers.

Projects selected in the technology neutral power auction must start delivering power to the country’s electricity networks Sistema Interconectado Central (SIC) and Sistema Interconectado del Norte Grande (SING) on January 1, 2024.

The auction Licitación de Suministro 2017/01, just like the auction held last year, will include time of day-specific supply blocks for solar power projects. Projects that encounter problems with environmental permits could be granted a two-year delay.

In the 2016 electrical supply tender, renewable energy projects were awarded more than half of the quota. The average price in the contest of $47.6 per MWh was the lowest in an auction of this type in Chile. Several PV projects were winners, including a Solarpack project, which put forth a price of $29.1 per MWh.

Rodrigo Castillo, the managing director of the Chilean Energy Federation, explained to pv magazine in May that it is not important that the bids for solar projects will be lower than last year’s lowest bid, which was $29/MWh, but that these will be lower than the average price registered for solar projects in the 2016 auction, which were around $40/MWh.

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