Average prices in Chilean power tender fall to USD 32.5/MWh

About 600 MW of renewable energy projects will be built in Chile following the country's latest power tender, which achieved an average price of USD 32.5 (EUR 27.9) per MWh, energy minister Andres Rebolledo said on Thursday.

Italian energy group Enel SpA (BIT:ENEL), through its subsidiary Enel Generacion Chile, was the biggest winner, securing 242 MW of projects.

The energy ministry said that the average price for successful projects is a record low for the country. It is down from USD 47.6 per MWh in the previous tender in 2016. Rebolledo said the auction outcome is good news for families as it will help lower electricity bills.

In the latest tender, bidders competed to supply a total of 2,200 GWh of energy over a 20-year period starting on January 1, 2024. According to the country's power sector regulator CNE, the auction has attracted 20,700 GWh of offers, almost nine times the amount sought. The lowest bid was priced at USD 21.48 per MWh.

All winning projects will use renewable sources and according to the minister are expected to lead to almost USD 1 billion of infrastructure investment in the country.

Enel will supply 1,180 GWh per year, or 54% of the 2,200 GWh offered in the tender. The projects it secured include 116 MWp of solar, 93 MW of wind and 33 MW of geothermal. The solar and geothermal plants will be built in the Antofagasta region, northern Chile, and the 93-MW wind farm will be in the Araucania region, southern Chile.

(USD 1 = EUR 0.859)

Choose your newsletter by Renewables Now. Join for free!