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2.31 TWh Clean Energy Auction In Chile In May 2021

Having awarded 2.2 TWh clean energy in a November 2017 renewable energy auction, Chile is now planning to award 2.31 TWh in another such auction to be launched in May 2021. Pictured is the hand statue in Atacama Desert in Chile. (Photo Credit: www.goodfreephotos.com)

Anu Bhambhani
  • CNE has informed that it plans to launch a renewable energy auction to contract 2.31 TWh
  • The tender will be held in May 2021 and will welcome storage systems as well
  • Bidding terms will be issued in December 2020 with some changes to encourage larger participation to arrive at competitive prices

The National Energy Commission (CNE) of Chile plans to hold the country's next renewable energy auction in the month of May 2021 to contract 2.31 TWh. In the month of December 2020, it will issue terms of the auction. Storage systems will be encouraged to participate in this tender.

Interested national and international power generators can submit proposals for the projects that can start generating clean energy starting from 2026 for a period of 15 years. Electricity generated will be procured by electricity distribution companies under long term contracts with the winners to supply this power to residential consumers and small and medium enterprises (SME).

CNE said the preliminary terms and conditions of the tender will introduce some changes to reduce some risks in order to encourage the participation of bidders to ensure competitive prices. Details of the tender announcement can be found on the CNE website.

In the last renewable energy auction of Chile, the country contracted 2.2 TWh annually attracting an average price of $32.5 per MWh in November 2017 (see Average Price Of $32.5/MWh At Chile Auction). Enel Generacion Chile submitted lowest winning bid of $21.48 per MWh (see Enel Offers Lowest Bid For Chilean Auction).

In July 2020, the Ministry of National Assets selected 8 companies to develop over 2.6 GW renewable energy on federal land with Solarcentury winning largest chunk of 1.04 GW (see Chile Awards Over 2.6 GW In Renewables Auction).