The Chilean National Energy Commission (CNE) has issued draft bidding rules for its first regulated electricity supply auction of 2023. The country plans to hold an auction of 5.4 TWh, divided into 2 supply blocks of 1.8 TWh and 3.6 TWh each, destined to cover consumption from 2027 and 2028 with energy storage and non-variable renewables.
The objective behind the changes in bidding rules is to facilitate the development of a portfolio of renewable projects that can contribute energy during non-solar hours, in turn reducing associated risk. Indeed, Chile is currently facing challenges with its dispatch capacity during solar hours, leading to price decoupling and curtailment. This situation has put financial strain on renewable energy generators in the northern region of the country, as the rapid growth of renewable plants without storage systems has outpaced grid expansion.
In 2021, Chile produced 88 TWh of electricity (+4.4% compared to 2020), with renewables accounting for 46% of the total. The share of renewables in the country’s capacity mix grew from 43% in 2018 to 51% in 2021.
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