Chile's power public auction to support 2GW of renewables as well as storage projects

Sep 8, 2021 05:41 PM ET
  • Sonnedix, Opdenergy and also Canadian Solar were amongst the 5 effective bidders in Chile's newest power auction, which occurred yesterday (7 September) and also will certainly see the country support 2GW of renewables as well as storage space installments.
Chile's power public auction to support 2GW of renewables as well as storage projects
Image: Sonnedix

Auctioning 2,310 GWh each year to supply energy demands for a period of 15 years from 2026, the tender closed with average prices of US$ 23.78/ MWh, 27% lower than the country's public auction in 2017.

With 29 companies submitting bids, the tender was 8 times oversubscribed, according to Chile's National Energy Commission (CNE), with the most affordable bid can be found in at US$ 13.32/ MWh.

Results from the tender are expected to cause a financial investment of nearly US$ 2 billion in new infrastructure in Chile, claimed CNE executive secretary José Venegas.

Independent power manufacturer (IPP) Sonnedix exposed it was awarded 39% of the overall supply, representing 903GWh/year, that will allow it to develop around 424MW solar PV projects and also invest US$ 300 million. The firm has actually formerly increased its setting in Chile's solar field through a host of project purchases.

One More IPP, Spain's Opdenergy, was granted 819GWh/year, standing for 35% of the overall public auction capacity. The business stated it will create the awarded energy with a portfolio of solar and also wind projects of greater than 600MW.

Canadian Solar posted the US$ 13.32/ MWh rate, according to neighborhood magazine La Tercera, with this standing for a lowest level bid for Chile's power public auctions.

Racó Energía was also successful in the tender, while Portuguese energy EDP said it was awarded a power purchase agreement to offer energy from a 120MW wind project that is expected to be operational by 2025.

CNE claimed projects sustained by the tender will help reduced home costs. "We are satisfied with this outcome since it enables us to assure a risk-free electrical power supply at affordable costs for our clients in the future," said Rodrigo Castillo, executive supervisor of the Association of Electric Companies, which is Chile's transmission and distribution trade body.

" One of the most crucial point will certainly be that these excellent outcomes are mirrored, as soon as possible, in the bills of Chilean households."

Thanks to its renewables policies and dedication to phasing out coal, Chile was the highest-scoring market in BloombergNEF's most recent Climatescope report, the study organisation's annual survey of the energy change in developing nations. The nation has actually currently met its 2025 clean energy required target of 20% of generation for energies as well as is going for 60% of its power generation to come from tidy sources by 2035.

Current developments in Chile's solar industry have actually seen designer Mainstream Renewable Power unveil plans for a 1GW renewables system, while French utility Engie is intending to create 2GW of renewables in the country by 2025 as part of efforts of a transition away from coal generation.

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