TL;DR
Chile’s National Energy Commission announced the bidding terms for its first energy auction that includes storage. The process favors renewable energy, especially solar paired with storage, with a focus on time-of-day supply blocks and 15-year contracts. The auction is scheduled for late 2026, with specific rules supporting renewable projects.
Chile’s National Energy Commission (CNE) has announced the preliminary bidding terms for its 2026/01 energy auction, which notably includes provisions for storage-backed renewable energy projects. This marks Chile’s first auction to explicitly incorporate storage systems alongside generation assets, with a structured, time-of-day supply approach. The move underscores a policy shift towards cleaner, flexible energy sources and aims to support renewable deployment with long-term contracts.
The CNE’s preliminary terms for the 2026/01 tender specify a technology-neutral process that favors renewable energy, particularly solar paired with storage, by excluding high-emission fuels such as coal, petroleum coke, diesel, and No. 6 fuel oil from primary generation sources. Bidders must demonstrate interconnected generation assets or storage systems within the National Electric System (SEN).
The auction comprises two supply blocks totaling 2,835 GWh/year under 15-year contracts, with supply periods starting from 2029 and 2030 respectively. Each block is divided into three time-of-day segments: late night/morning (00:00–07:59 and 23:00–23:59), daytime (08:00–17:59), and evening (18:00–22:59). The largest share of supply is allocated to the daytime segment, aligning with solar generation, while storage is expected to enable delivery during evening peak hours.
Most supply is concentrated in Zone 2, which includes major utilities such as Enel and CGE, but zones 1, 3, and 4 are also involved. An additional variable component of 5% of annual demand is included to accommodate unexpected demand fluctuations. Bidders are required to demonstrate backup capacity and project progress, with provisions for delays and backup contracts if necessary.
Implications of Chile’s First Storage-Integrated Energy Auction
This auction signals Chile’s commitment to integrating storage with renewable energy, supporting grid flexibility and reliability. The structured time-of-day supply blocks and long-term contracts aim to foster investment in solar and hybrid projects, which are essential for meeting future demand and decarbonizing the power sector. The exclusion of fossil fuel generation and emphasis on storage-backed bids reflect policy priorities aligned with climate goals and energy security.
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Chile’s Evolving Renewable Energy Policy Framework
Chile has been progressively expanding its renewable energy capacity over the past decade, driven by government targets and international commitments. Previous auctions have primarily focused on solar, wind, and hydropower, but this is the first to explicitly incorporate storage as a key component. The move aligns with regional trends toward flexible, clean energy systems, and follows recent policy signals favoring renewable integration and decarbonization.
The timing of this auction coincides with Chile’s broader efforts to diversify its energy mix, reduce reliance on fossil fuels, and meet increasing electricity demand forecasted to grow from approximately 32,863 GWh in 2029 to over 41,000 GWh by 2037. The auction’s structure is designed to encourage projects that can deliver during peak periods, especially in the evening, leveraging solar plus storage solutions.
“The bidding terms clearly favor renewable projects with storage, especially solar paired with batteries, which is a significant step for Chile’s energy transition.”
— an anonymous PV Magazine source
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Remaining Questions About Auction Implementation
Details about the reserve price, exact bidding process, and specific qualification criteria are still to be finalized and will be disclosed closer to the auction launch. It is also unclear how the variable component will be managed in practice, and how bidders will demonstrate project progress and backup capacity requirements.
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Next Steps in Chile’s Renewable Auction Process
The CNE plans to launch the auction on 1 July 2026, with an inquiry period ending on 28 August and responses due by 2 October. Bids will be submitted in December 2026, with the economic offers opening in January 2027. The final award is expected by mid-January, setting the stage for project development and potential new renewable capacity starting from 2029.
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Key Questions
What types of projects are eligible to bid?
Projects must be renewable energy assets interconnected to the National Electric System, with the ability to incorporate storage systems. High-emission fuels are excluded as primary sources.
Will storage be mandatory for all bids?
Storage is not mandatory but highly favored, especially for projects aiming to deliver during evening peak hours, and bidders must demonstrate their backup capacity and project progress.
When will the auction results be announced?
The award is scheduled for 13 January 2027, following the economic offer opening and evaluation process.
What is the significance of the time-of-day segmentation?
The segmentation aligns supply with demand patterns, supporting solar during the day and storage for evening peaks, thus enhancing grid stability and renewable integration.
Are there any quotas for specific renewable technologies?
No, the process is technology-neutral, but the rules favor solar and hybrid projects with storage due to the exclusion of fossil fuels and the structured supply blocks.
Source: PV Magazine
