Chile Announces the Lowest Bid of $0.01332/kWh in its Renewable Energy Auction

A total of 29 companies participated in the bidding process


The National Energy Commission of Chile (CNE) has announced the list of bidders for the procurement of 2.31 TWh/year of renewable energy. The lowest bid submitted was $0.01332 (~₹0.98)/kWh, with several bids in the $0.021 (~₹1.54)/kWh and $0.028 (~₹2.05)/kWh range.

According to the local daily La Tercera, the lowest bid was offered by Canadian Solar Libertador Solar Holding for a solar project.

In all, 29 bidders participated in the bidding process to supply power to regulated customers of the National Electric System for 15 years starting in 2026.

The bidding process was carried out by Empresas Eléctricas AG and by Enel.

Within the new bidding law framework, CNE is responsible for designing, coordinating, and directing the public bidding process for this year. The objective of the bidding process is to help electricity distribution companies to have contracts for the long-term supply of electricity to their customers subject to price regulations.

The bidding terms consider reducing risks to encourage the participation of different energy suppliers, achieve competitive prices that benefit regulated customers and give more access to different types of energy, including storage.

The list of bidders included Acciona Energía Chile Holdings, Eólica Monte Redondo, Inversiones Hornitos, Solar Los Loros, Enel Generación Chile, Sonnedix PPA Holding, Chagual, Energía, FRV Development Chile I, Racó Energía, Colbún, Hidroeléctrica Rio Lircay, OPDE Chile, Copiapó Energía Solar, Duqueco, PV Salvador, Energía Coyanco, Inversiones La Frontera Sur, Chungungo Sociedad Anónima, Atlas Energia, Likana Solar, Wind Farm Vientos del Pacífico, Canadian Solar Libertador Solar Holding, Renovalia Chile Dos, Pacific Hydro Chile, San Andrés Wind Farm, Conejo Solar, Librillo Solar, Carica Wind Farm, and GR Power Chile.

The supply tender consists of three units of hourly blocks N ° 1-A, N ° 1-B, and N ° 1-C, totaling 2,310 GWh, all for the electricity supply starting in 2026 and for 15 years.

Chile added 2.5 GW of new renewable capacity in the first half of 2021, according to energy commission CNE. This was 1 GW more than was added during the whole of last year. Renewables contribute 28% to Chile’s total power capacity.

In May this year, Sonnedix, the global solar independent power producer (IPP), and Cox Energy América, a solar energy company, closed a $120 million financing from Sumitomo Mitsui Bank Corporation through the joint venture Sonnedix Cox Energy Chile. The financing will cover the IPP’s 160 MW development project Sonnedix Meseta de Los Andes solar project in Chile. The project is located in the Valparaíso Region of Chile, in the municipalities of Calle Larga and Los Andes.

Virginia-headquartered AES Corporation has signed an agreement with the government to retire over 1 GW of coal capacity in Chile by 2025. The announced capacity includes roughly 20% of the country’s installed coal volume.


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