Canadian Solar comes out as the 2nd winner in Chile's power auction

Canadian Solar Inc (NASDAQ:CSIQ) on Thursday confirmed that it was the second of only two winners in Chile’s power auction a month ago, securing power purchase agreements (PPAs) for its Zaldivar solar-plus-storage project in the Chilean region of Antofagasta.

The project is currently in the middle stage of development. When it reaches commercial operation in 2026, Zaldivar will be a 253-MWp solar farm with a battery energy storage system (BESS) of 1,000 MWh, Canadian Solar said.

The solar energy company expects to start construction in 2024.

The facilities will operate partly under 15-year US-dollar denominated PPAs that were awarded in the auction. Canadian Solar then managed to place 126 GWh per year with qualified power distributors.

The remainder of Zaldivar’s production will be sold to private off-takers, the company said.

In this year’s tech-neutral power auction, the Chilean energy commission sought to attract 5,250 GWh per year for 15 years, but ended up with only 777 GWh/year offered by Fotowatio Renewable Ventures (FRV) and Canadian Solar, bidding as Zapaleri SpA.

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