Big Interest In Chilean Energy Auction

Chile’s National Energy Commission Receives Proposals From 24 Companies In Response For 2017 Energy Auction
07:40 PM (Beijing Time) - 31. October 2017
n_markets_chile_Big Interest In Chilean Energy Auction

The big interest of developers in the Chilean energy auction indicates that very competitive tariffs can be expected in this auction, said CNE Executive Secretary Andres Romero. In a 2016 energy auction, the lowest solar tariff was $29.1 per MWh. (Photo Credit: Comision Nacional De Energia)

Key Takeaways

  • Comision Nacional De Energia receives interest from 24 companies to deliver 2,200 GWh of energy starting from 2024
  • A number of them come from the renewable energy sphere, including Acciona Energia Chile Holdings SA, Photovoltaic Norte Grande, Enel Generacion Chile SA, Atacama Solar
  • Winners will be announced on November 3, 2017 after the proposals are evaluated by the agency

Chile has received proposals from 24 national and international companies to develop energy generation projects in the country. Some of the interested companies come from the renewable energy industry. The auction aims to generate 2,200 GWh of generation annually from 2024 onward, for two decades.

The Comision Nacional De Energia or National Energy Commission confirmed that it has received 24 bids which hints at competitive prices to be expected. The companies participating in the tender include Acciona Energia Chile Holdings SA, Photovoltaic Norte Grande, Enel Generacion Chile SA, Atacama Solar.

Once the commission evaluates the proposals, it will announce the winners on November 3, 2017, informed CNE Executive Secretary Andres Romero.

In this auction, the commission will award capacity in seven supply blocks. Three hourly blocks will be assigned 1,700 GWh and remaining four quarterly blocks will represent 500 GWh of energy generation. All these will come into operation between January 1, 2024 to December 31, 2043.

Companies are also expected to submit a risk rating report with follow-up and physical support of the offer. The commission is responsible for designing, coordinating and directing the public bidding process for this year.

In the last energy auction held in 2016, solar power project developers landed only 720 GWh of capacity as against wind power that won 12,430 GWh. The lowest solar tariff was $29.1 per MWh back then. The average winning price was $47.6 per MWh.

 

Anu Bhambhani

Anu Bhambhani is the News Editor of TaiyangNews

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Anu Bhambhani