Supply tender: Only five companies are competing for 3,600 GWh in Chile

the Supply tender 01/2023 to Chilean He only had an interest Five local and foreign generating companiesWhich presented its administrative and economic presentations in the call to provide the electrical energy needs of regulated customers starting in 2027 and 2028.

the National Energy Commission (CNE) The Chilean company carried out this event in the municipality of Vitacura, Santiago, in order to auction 3,600 GWh (1,500 GWh in Block 1 and 2,100 GWh in Block 2). Finally, the following companies expressed interest there:

  • Gil enel chile
  • Investments La Frontera Sur SPA
  • Energex Renewable Energy
  • FRV Development Chile
  • JR power

Although it should be noted that Inversiones La Frontera Sur SPA and Innergex maintain the same parent company, and both are controlled by North American Innergex Renewable Energy, which holds a majority stake in the two aforementioned companies.

This low interest was surprising within the Chilean energy sector, mainly because there were high expectations on the part of the renewable energy sector from a series of changes in bidding rules, such as the payment of SSCC costs, and the possibility of shifting the regulatory costs of renewable energy. Short-term energy market, dividing it into regional blocks (divided into three hourly supply blocks) and integrating a direct incentive for storage and renewable energy generation means with regulated capacity (up to 15 MWh per block per hour).

So much so that at the beginning of the call there was speculation that 84 proposals recorded 2015, and even the National Energy Commission itself recently confirmed that it faced the process with “wise optimism” (See note).

But not only had this historic number not been reached, it was also behind the meager bids of 2022 with only a third interested that year (at the time there were 15 applicants). It is an invitation of this type with the smallest number of participants since the 2013/01 supply tender (in that year there were two interested parties and it was finally declared invalid).

Next steps

In accordance with the program specified in Supply Tender 01/2023, administrative offers for the 3,600 GWh supply call must be opened and evaluated no later than Wednesday 10 April (the working day following the tender).

However, the date of public ownership of these minutes will be Thursday, April 18 of this year only, and corrections to the administrative offers will be presented a week later (April 25); Then, on Thursday, May 2, he opened and inspected the economic envelopes, detailing the nine interested companies and the prices piece by piece.

While on May 8, a public awards ceremony will be held for the mentioned shows if they finish in the first stage. Otherwise, a second phase of the auction will begin, with economic bids being submitted on Monday, May 13 and allocated the following day.

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