Chile’s latest power auction saw five successful bidders winning a total of 2 GW of renewables and storage projects across the country. Sonnedix, Opdenergy and Canadian Solar are among the successful bidders. A total of 29 companies participated in the bid, with the lowest bid priced at $13.32/MWh. This auction for 2,310 GWh of energy supply per year was closed with an average price of $23.78/MWh.

This annual energy supply is for a period of 15 years starting from 2026. The closing amount for the latest auction was 27 per cent lower than the country’s auction in 2017. The auction is expected to bring in an investment of around $2 billion for the development of new renewable infrastructure in Chile.

Sonnedix, an independent power producer, was awarded 39 per cent of the total supply which represent 903 GWh/year. This would allow the company to establish 424 MW of new solar PV projects, with an investment of $300 million. Sonnedix already has an outlay of solar projects undergoing in Chile. Spain’s Opdenergy, received 35 per cent of the total auction capacity, which reflects a capacity of 819 GWh/year. The company is expected to generate the awarded energy with a portfolio of solar and wind projects of more than 600 MW. Portuguese utility EDP won a power purchase agreement for a 120 MW wind project, expected to be operational by 2025. Racó Energía was also a successful bidder.

In the recent times, Chile has witnessed many developments in its renewable energy infrastructure space, with Mainstream Renewable Power announcing its plans of developing a 1 GW renewables platform and Engie’s target of developing 2 GW of renewable energy in Chile by 2025.

REGlobal’s Views: Chile has become a renewable energy investment hotspot for developers from all over the world owing to its massive potential for solar and wind power deployment. Further, the country is fast moving towards generating up to 70 per cent of its total electricity through renewables by 2030 with enabling policies and a supportive investment environment.