Chile approves energy bidding process for regulated customers
Chile’s National Energy Commission (CNE) has issued Exempt Resolution No. 130 approving the preliminary bases for public bidding 2025/01 for the supply of regulated customers. The supply period corresponds to the years 2027–2030 and the total energy and power to be tendered is 1,680 GW per year.
The CNE has published the following relevant dates for the bidding process:
- Call for national and international bids: Tuesday, April 29, 2025.
- Submission of proposals: Wednesday, October 01, 2025.
- Opening and inspection of the financial bids and opening of the reserve price: Thursday, October 23, 2025, starting at 11:00 am Chile Standard Time. The location is still to be announced.
Key features of the bidding process
1. Short-term bidding
The purpose of this tender is to supply the consumption of regulated customers during the period from January 1, 2027 to December 31, 2030. Other long-term supply requirements will be addressed in a future supply bidding process.
2. Segmentation of bidding by zone
The bidding points at which the bidders must deliver the prices and amounts offered correspond to Atacama 220 kV for Zone 1, Alto Jahuel 220 kV for Zone 2, Charrúa 220 kV for Zone 3, and Melipulli 220 kV for Zone 4.
For the purposes of this bidding, one energy supply block and its associated power is bid in the respective bidding points, which are divided into four Zonal Supply Blocks, which are in turn composed of three Hourly Supply Blocks (Schedule A, between 12:00 am–7:59 am and between 11:00 pm–11:59 pm; Schedule B, between 8:00am–5:59 pm; and Schedule C, between 6:00 pm–10:59 pm).
| Tendered energy BS1 (GW) |
Time slot A | Time slot B | Time slot C | Time slot BS1 |
| Zone 1 | 79 | 113 | 64 | 256 |
| Zone 2 | 204 | 289 | 162 | 655 |
| Zone 3 | 173 | 255 | 138 | 566 |
| Zone 4 | 62 | 91 | 50 | 203 |
| Total BS1 | 518 | 748 | 414 | 1,680 |
3. Allocation of systemic costs
Systemic costs will be borne by the supplier and are included in the energy price in accordance with the indexation formula. These consist of costs not covered by the real marginal cost, such as compensation for the stabilized price of small generation sources and small distributed generation sources, payments for cost overruns due to operation of generation plants outside their order of merit, payments for start-up cost overruns and detention of generating units, and payments for the constitution and use of water reserves, payments for complementary services, and compensation for the emissions tax.
4. Compliance and warranties
The model supply contract contained in the bidding conditions establishes clauses, penalties, and guarantees with the purpose of ensuring the quality, timeliness, and security of the supply as from its start date and for the years indicated in the bidding conditions.
For example, a supporting statement is required from the bidder indicating that it is the owner, lessee, or usufructuary of one or several means of generation interconnected to the National Electric System (SEN), or, if not, that it undertakes to have such condition six months prior to the supply start date.
Likewise, 90 days following the date of approval of the contract, the awarded supplier must contract and deliver to the bidding distribution companies a first demand insurance policy for immediate performance of the contract. The policy will be executed in the following cases:
- When the supplier does not comply with the committed supply of one month during the entire supply period.
- When the early termination of the contract is executed due to causes attributable to the supplier.
- When the supplier has not accredited its condition of owner, lessee, or usufructuary of a means of generation interconnected to the SEN, as of June 30, 2026, or loses such condition during the supply period of the contract.
- When the supplier does not sign backup contracts with other generators as of June 30, 2026, if applicable.
The next relevant milestone in this process will be for the CNE to approve the bidding conditions by means of an exempt resolution.
For more information, please contact the authors.
