Average Price Of $32.5/MWh At Chile Auction

Chilean Ministry Of Energy Hopes For $1 Billion Investment In New Renewable Energy Infrastructure From 600 MW To Be Build For Supplying 2.2 TWh/Year
07:15 PM (Beijing Time) - 03. November 2017
n_markets_chile_Enel Offers Lowest Bid For Chile Auction1

Using the synergies between Enel Generación Chile and Enel Green Power, the Enel Group won 54% of the 2.2 TWh per year offered in Chile's 2017 energy tender, more than any other participant. Enel's price bid at $21.48 per MWh was by far the lowest. It will provide the energy from a mix of new renewable projects with a total capacity of 242 MW, comprising 116 MW of solar, 93 MW of wind and 33 MW of geothermal.

Key Takeaways

  • Chile has announced the results of its energy auction 2017, awarding 600 MW to renewable energy projects
  • Average winning price was recorded at $32.5 per MWh; the lowest price was offered at $21.48 per MWh
  • As against 2.2 TWh of energy capacity on offer, the Ministry of Energy received interest for 20.7 TWh
  • Enel Green Power’s local subsidiary has won 54% of the capacity, which it will supply from solar, wind and geothermal power plants with at total capacity of 242 MW
  • Enel's 116 MW PV capacity will be located in Northern Chile’s Antofagasta region, according to Enel

The much-awaited results of the Chilean energy auction 2017 are out. The entire capacity allocated in this technology neutral tender has gone to renewable energy for an average price of $32.5 per MWh.

This price is lower than the average price of $47.6 per MWh awarded in 2016. In fact, it is lowest of all the energy auctions carried out by Chile since 2006, with the highest being in 2013 when the average winning price was $129 per MWh.

The average price of $32.5 per MWh in the 2017 energy auction is the lowest Chile has witnessed since the beginning of auctions in 2006.
The average price of $32.5 per MWh in the 2017 energy auction is the lowest Chile has witnessed since the beginning of auctions in 2006.


Chilean Ministry of Energy informed that even though 2.2 TWh of capacity was offered in the tender, it received a 9 times higher interest – 20.7 TWh. 100% of the energy we allocate today is renewable, clean energy, which is equivalent to approximately 600 MW of installed capacity in new renewable projects, and which we hope will attract close to $1 billion dollars in investment in new infrastructure for the country,” said Minister of Energy Andrés Rebolledo.  

A day before, Reuters had reported that out of the 24 companies that bid for the tender, Enel Generación Chile and GPG Solar had offered the lowest bids for $21.48 per MWh and $24.80 per MWh, respectively (see Enel Offers Lowest Bid For Chilean Auction).  

Even as the ministry did not share the names of the winners, Enel Generación Chile announced winning 54% of the total capacity of 2,200 GWh offered in the tender. It will now supply 1,180 TWh annually to Chilean distribution companies through 116 MW of solar, 93 MW of wind and 33 MW of geothermal power.

“We are extremely pleased about this new important award for the supply of electricity to Chilean customers,” said Enel CEO and General Manager Francesco Starace. “The combination of different renewable technologies and some thermal generation has proven once again the winning approach. To this end, it is worth mentioning that in the past few years we have grown, through Enel Green Power, a solid renewable footprint that includes hydro, wind, solar as well as completing the construction of the first geothermal plant in South America, Cerro Pabellón. This award grants the possibility to finance and build 242 MW of renewable energy plants sustaining a continuing investment flow in Chile towards a more competitive and more sustainable generation mix in the country and lower cost of energy in the years to come.”

Enel will be developing the solar and geothermal plants in Antofagasta region in Northern Chile, while the 21,wind power projects will come up in the Araucania region in Southern Chile. In Chile, Enel Green Power operates through its subsidiaries Enel Chile, Enel Generación Chile and Enel Distribución Chile.

The awarded companies through the tender launched by the country’s National Energy Commission (Comisión Nacional de Energía) have to supply power to a number of Chilean distribution companies. The power is aimed at meeting the energy demand of regulated market customers over a period from January 1, 2024 to December 31, 2043.


Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani