Chile Opportunities – Energy And Desalination Tender

Chile's national energy commission CNE published the final bidding terms for a national electric power supply auction.

Generators have until October 11 to submit offers.

Companies whose bids exceed the ceiling price established by the CNE will be given a chance to modify their offers in a second phase, with the modified offers due on October 26.

Projects deemed admissible during the tender's initial phase will be awarded November 3, while second-phase projects will be awarded November 10.

The auction will include time of day-specific supply blocks to accommodate the intermittent nature of wind and solar parks, as well as quarterly supply blocks to optimize generation from energy sources - namely wind and hydropower - that are subject to seasonal variability.

The seasonal blocks are a new addition to the process, designed to further foment competition from renewable energy sources.

Energy will be purchased by the country's power distributors under 20-year power-purchase agreements, or PPAs.

Chile's renewable-friendly auction system has generated fierce competition from wind and solar developers, with the last three regulated market tenders clearing at average prices of US$107/MWh, US$79.3/MWh and US$47.6/MWh, respectively.

Chilean state copper giant Codelco has called for expressions of interest from companies and consortiums to participate in a tender to supply desalinated water to the company's operations in northern Antofagasta region (II).

The tender is for a US$1.2 desalination plant to be built under a BOOT (build-own-operate-transfer) contract to supply the water needs of the Chuquicamata, Radomiro Tomic, Ministro Hales and Gabriela Mistral mines. Output at the four...