European firms big winners in Chile’s 2GW renewables tender

Chile’s latest renewables tender saw EDP Renewables, Mainstream Renewable Power and ODPEnergy win contracts to develop new wind capacity. The results were announced yesterday (7 September) after the deadline for submissions had been extended from June to August due to Coronavirus lockdown measures.

In total, contracts were awarded to supply 2,310GWh annually of electricity to households and small businesses from 2026, at an average price of $23.78/MWh. The lowest winning offer was made by Canadian Solar at just $14.84/MWh.

“This is great news for Chile and its people. We are facing a historic result in terms of low energy prices,” said energy minister Juan Carlos Jobet.

The tender will lead to the installation of around 2GW of new wind and solar projects in the country, attracting almost $2 billion worth of investment, said the head of the National Energy Commission, Jose Venegas.

Spain’s ODPEnergy won contracts to supply 819GWh a year of electricity (or 35.5% of the total) at an average price of $21.77/MWh.

ODPE said that it would supply the energy through the development of wind and solar energy projects with more than 600MW of installed capacity. The company already operates the 50MW La Estrella La Estrella (50MW) OnshoreO’Higgins Region, Chile, Central & South America Click to see full details wind farm in central Chile, which entered commercial operation earlier this year having been awarded a power purchase agreement (PPA) in Chile’s 2016 energy auction.

EDP Renewables won a contract to supply 273GWh of electricity at a price of $26.80/MWh. The company said that the power will be supplied by its 120MW San Andres San Andres (120MW) OnshoreCollipulli, Araucania, Chile, Central & South America Click to see full details wind farm, to be build in the southern Araucania region.

EDP entered the Chilean renewables market in May this year with its acquisition of a portfolio of projects from Atacama Energy and Lader Energy. The addition of San Andres will increase the pipeline of projects it plans to develop by 2025 to 200MW, the company said.

“The award we have won in the Chilean renewable auction reflects our commitment to this market as well as to the rest of the Latin American markets in which we are present,” said EDPR chief executive Miguel Stilwell d’Andrade.

Mainstream won a contract to supply 105.8GWh/year of electricity at an average price of $31.30/MWh from its Racó portfolio of renewable projects.