Chile Opportunities – Energy and Desalination Tender
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 copper.
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 1,680l/s.
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 release.
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 don’t have.”
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.
Harris Gomez Group has a specialised team of Legal and Commercial Professionals that help foreign companies with their interests in Chile and Latin America. Our team of specialists understand both Common and local laws which allows us to bridge the gaps that tend to arise when doing business in the Region.
If you are interested or need any assistance, please contact Cody McFarlane – email@example.com