The National Energy Commission of Chile has awarded contracts to several companies to supply a total of 12,430 GWh/year of renewable energy.
The contracts were awarded following a tender round launched by the Commission in May 2015 which involved 82% of renewables and the remaining to conventional technologies.
A total of 84 companies have competed for 20-year power purchase contracts, which are scheduled to start supplying power from 2021.
Global wind and solar energy company Mainstream Renewable Power is one of the major beneficiaries of the Chile’s largest ever electricity supply auction.
As part of the contract, Mainstream will build and operate seven wind energy plants, which have a combined capacity of 986MW, with an investment of $1.65bn.
Planned to be built throughout Chile, the projects are scheduled to be commissioned in January 2021.
Mainstream CEO Eddie O’Connor said: “I will be meeting with the CEOs of the main wind turbine manufacturers in the coming months to discuss the next generation of turbines required for these projects.”
Other successful bidders included Italian utility Enel's local arm Endesa and Spanish firms Acciona Energia, Ibereolica, and Cox Energy, reported Reuters.
The tender has resulted in an average price of $47.6 per MWh for the power supply.
According to the Chile’s energy commission, wind projects received about 40% of the total contracts while solar secured between 10% and 12%.
Image: Chile seeks to boost renewable power generation capacity. Photo: courtesy of Mainstream Renewable Power.