Chile signs new electrical supply tender

The Chilean government has published the guidelines of the new electricity tender, which will auction 1,620 GWh annually in the daylight block.

Throughout the 2017/01 Supply Tender, which covers the needs of the regulated customers, 4,200 gigawatts per year are to be auctioned altogether, according to the definitive guidelines published on Thursday. The winning projects would be obliged to supply the electricity for 20 years, with the start dates scheduled for 1 January 2023.

The tender consists of two large sections, one that includes 3,540 GWh per year in hourly blocks, and another that includes 660 GWh per year in quarterly or annual blocks. The awarding of the projects is set to be made in two stages.

Within the different blocks, a 1,620 GWh daylight block (between 8 and 17:59 hours) has been set, and an additional quota of 1,100 GWh has been established for the nighttime block as well as a quota of 820 GWh for the afternoon block.

Additionally, some modifications have been introduced to this tender, among them is an increase to the guarantees for the completion of the projects.

“The changes aim to create an even more competitive market than we have already achieved and to make sure that the offers presented are serious, responsible and non-speculative,” said the executive secretary of the National Energy Commission (CNE) Andrés Romero.

The current schedule states that the proposals for the first stage are due to be submitted on 11 October and that the winners will be decided in early November 2017. The submission of bids for the second stage, and then the awarding of the projects, is expected later in November.

In the last electrical supply tender, renewable energy projects were awarded more than half of the quota. The average price in the contest of US$47.6 per MWh was the lowest in an auction of this type in Chile. Several PV projects were winners, including a Solarpack project, which out forth a price of US$29.1 per MWh.