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 mines averages 1Mt/y
The plant, originally part of the US$5.4bn RT
Sulfuros expansion of Radomiro Tomic (pictured), will have
initial capacity of 630l/s with the potential to expand to
The project includes maritime works, the desalination plant, a
160km water pipeline and the corresponding pumping system, as well
as the electric infrastructure needed, Codelco said in a
CEO Nelson Pizarro said last August that the company
had already secured the location, permits and rights for the
project, as well as the advanced engineering studies, but that it
was not in Codelco's plans to invest "resources that we
Asset Chile is acting as Codelco's financial advisor
for the project and is responsible for the coordination of the
process. Those interested can request more information at firstname.lastname@example.org.
The call is the second for expressions of interest issued by
Codelco in less than a week, following the January 20 invitation
for parties that wish to develop the company's lithium
assets in the Maricunga and Pedernales salt flats.
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Notwithstanding international and domestic adversities (ups and downs of prices for crude oil, peso-dollar parity, a not so-friendly neighbor president), the energy reform, perhaps the most daring of those undertaken by President Peña, offers yet a lot to reap from.
In December 2013, Mexico passed a comprehensive constitutional reform that opened Mexico's energy industry to private investment and competition.
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