Chile releases bidding terms for first energy auction including storage

From pv magazine Latam

Chile’s National Energy Commission (National Energy Commission (CNE)) has approved the preliminary terms for the 2026/01 Licitación Pública Nacional e Internacional de Suministro 2026/01 tender. While the process is technology-neutral, it sends clear signals favoring renewable energy participation, particularly PV paired with storage.

The document does not set exclusive quotas for solar or other renewable technologies. However, it restricts eligible backup generation sources. Proposals must be backed by generation assets or storage systems interconnected to the National Electric System (SEN). Coal, petroleum coke, diesel, and No. 6 fuel oil are not permitted as primary fuel sources.

In this context, PV technology is well positioned to compete, especially when combined with battery storage. The tender allows storage systems as valid backup for contracted supply, provided bidders meet obligations related to energy withdrawal, backup capacity, and participation in the short-term market. For renewable projects with storage, energy from the generation facility must be clearly differentiated from energy discharged from storage systems.

Blocks

The tender comprises two supply blocks:

• Block 1: 1,575 GWh/year, supply from 1 January 2029 to 31 December 2043
• Block 2: 1,260 GWh/year, supply from 1 January 2030 to 31 December 2044

Total tendered volume: 2,835 GWh/year under 15-year contracts.

Time-of-day segmentation

A key feature for renewables is time-of-day segmentation. Each block is divided into three bands:

• Band A: 00:00–07:59 and 23:00–23:59
• Band B: 08:00–17:59
• Band C: 18:00–22:59

Band B, aligned with peak solar generation, accounts for the largest share: 700 GWh in Block 1 and 558 GWh in Block 2.

This structure supports solar bids during daytime hours, while storage enables delivery into evening peak demand, particularly Band C (18:00–22:59). This segment totals 389 GWh in Block 1 and 312 GWh in Block 2.

By zone, most supply is concentrated in Zone 2, which includes demand from Enel, Chilquinta Energía, Emelca, Litoral, Edecsa, EEPA and part of CGE CGE. Zone 2 totals 1,000 GWh in Block 1 and 799 GWh in Block 2. It is followed by Zone 3 (297 GWh and 237 GWh), Zone 1 (146 GWh and 117 GWh), and Zone 4 (132 GWh and 107 GWh).

Variable component

The tender includes a variable component equivalent to 5% of annual base energy demand to cover unexpected demand increases. Renewable developers must therefore factor in flexibility requirements alongside committed supply obligations.

The specifications also define requirements for new generation projects. Bidders must demonstrate sufficient backup capacity, financial close, and progress toward project execution. In case of delays, backup contracts must be secured with another generator or approved storage system, under conditions set out in the tender annexes.

The CNE projects continued growth in regulated customer demand over the study period. For 2029–2037, demand is forecast to rise from 32,863 GWh to 41,789 GWh. A second dataset in the tender documents projects consumption by participating distributors increasing from 32,279 GWh in 2029 to 46,018 GWh in 2040.

Timelines

The preliminary schedule sets the tender launch for 1 July 2026. The inquiry period runs until 28 August, with responses and any amendments due by 2 October. Bid submission is scheduled for 4 December 2026, economic offer opening for 5 January 2027, and the award ceremony for 13 January 2027.

Bids must be denominated in USD/MWh. The reserve price will be set by the CNE through a confidential administrative act and disclosed only at the opening of economic offers. Offers above the ceiling price will be deemed invalid.