Chile to launch auction for 2.31 TWh of renewables+storage in May

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From pv magazine Latam

The Chilean National Energy Commission (CNE) has announced that an auction for the contracting of 2.31 TWh of renewable energy will be launched in May.

The auction was originally planned to be held in June and to contract around 5.6 TWh, but it was then postponed due to the Covid-19 crisis.

According to the preliminary bidding terms published by the CNE, the selected projects must start delivering power to the Sistema Interconectado Central and Sistema Interconectado del Norte Grande electricity networks on January 1, 2026. These plants will supply electricity under 15-year power purchase agreements for 2026-2040.

The auction will also include the option of deploying storage systems. The final bidding terms will be issued in December.

The procurement exercise is expected to lead to the generation of 5.6 TWh of new electricity per year, more than double the 2.2 TWh the Chilean government allocated in the last renewable energy auction, held in early November 2017. In this procurement process, the lowest electricity price bid – $21.48/MWh – was submitted by the Enel Generación Chile subsidiary of the Italian energy giant. The final average electricity price was $32.50/MWh.

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