TL;DR
Chile’s CNE has approved the preliminary bidding terms for its 2026 energy auction, which emphasizes renewable energy and storage. The process supports solar and hybrid projects through time-of-day blocks and 15-year contracts. Details on specific quotas remain unspecified.
Chile’s National Energy Commission (CNE) has officially released the preliminary bidding terms for its first energy auction scheduled for 2026, emphasizing renewable energy sources and storage systems. This development signals a significant shift toward supporting solar and hybrid projects with 15-year contracts and time-of-day segmentation, making renewables more competitive in the country’s energy mix.
The bidding process, set to launch on July 1, 2026, involves two supply blocks totaling 2,835 GWh annually, with contracts spanning from 2029 to 2044. It is designed to favor renewable generation, particularly photovoltaic (PV) projects paired with storage, by excluding high-emission fuels such as coal, petroleum coke, diesel, and No. 6 fuel oil from eligibility. The process is technology-neutral but restricts backup generation to non-fossil fuel sources, with proposals required to include interconnected generation assets or storage systems.
The auction’s structure incorporates time-of-day segmentation into three bands—daytime, evening, and night—supporting solar during peak hours and storage for evening peaks. Most supply is concentrated in Zone 2, which includes major demand centers, followed by Zones 3, 1, and 4. A variable component of 5% of annual demand is included to accommodate unexpected increases, requiring bidders to demonstrate backup capacity and project progress. The schedule includes a bid submission deadline of December 4, 2026, with awards expected by mid-January 2027.
Impact of Chile’s First Storage-Integrated Energy Auction
This auction marks a pivotal step in Chile’s energy transition, encouraging renewable projects with storage to meet rising demand and reduce reliance on fossil fuels. The emphasis on time-of-day blocks and storage-backed bids aims to enhance grid flexibility and reliability, positioning Chile as a regional leader in renewable integration.
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Chile’s Renewable Energy Policy and Auction History
Chile has been progressively shifting toward renewable energy, with previous auctions favoring solar and wind projects. The current auction builds on this trend by explicitly supporting storage integration and excluding high-emission fuels, aligning with national goals to decarbonize the energy sector. The 2026/01 tender is the first to incorporate detailed time-of-day segmentation, reflecting a strategic move to optimize renewable generation during peak demand periods.
“The new bidding terms clearly favor solar and hybrid projects, especially those incorporating storage, which could accelerate renewable deployment in Chile.”
— an anonymous researcher
Details Still Unclear on Price Setting and Quotas
It is not yet confirmed how the reserve price will be set or whether specific quotas for solar or other renewables will be established. The exact impact of the variable component on project viability remains to be clarified, as well as how storage systems will be evaluated in terms of capacity and differentiation from generation energy.
Next Steps in Chile’s Renewable Energy Auction Process
The CNE will open the inquiry period until August 28, 2026, followed by responses and potential amendments. Bidders will prepare proposals aligned with the new terms, with submission due by December 4. The auction results are expected by mid-January 2027, setting the stage for a significant increase in renewable capacity and storage projects in Chile.
Key Questions
What types of projects are favored in Chile’s 2026 energy auction?
The auction favors renewable projects, especially photovoltaic (PV) and hybrid solar-plus-storage systems, due to exclusion of fossil fuel-based generation and support for storage integration.
Will there be specific quotas for solar or renewables?
No, the bidding terms do not specify quotas for solar or other renewable technologies; the process is technology-neutral but favors renewables through design features.
How will storage systems be evaluated in the auction?
Storage systems are eligible as backup for contracted supply, with requirements for energy withdrawal, backup capacity, and clear differentiation between generation and storage energy.
When will the auction results be announced?
The award ceremony is scheduled for 13 January 2027, following the bid submission and evaluation process.
What is the significance of the time-of-day segmentation?
The segmentation supports solar during daytime hours and storage for evening peaks, optimizing renewable energy delivery during demand fluctuations.
Source: PV Magazine
