Chile’s National Energy Commission (CNE) has approved the final terms of the 2026/01 Supply Tender, which will contract energy and capacity to serve regulated customers of distribution companies. The tender includes two blocks totaling 2,835 GWh per year once fully implemented and establishes conditions that facilitate participation from renewable energy projects and storage systems.

The tender does not require awarded energy to come exclusively from renewable sources and does not set technology-specific quotas. However, all bids must be backed by new or existing generation assets using primary fuels other than coal, petcoke, diesel, or No. 6 fuel oil. Natural gas remains eligible under the tender rules.

Backup facilities must be connected to Chile’s National Electric System (SEN), have sufficient capacity to meet contracted energy obligations, and be authorized to participate in the short-term electricity market. Bidders may rely on existing facilities, new projects, or a combination of both.

The tender explicitly recognizes energy storage systems as eligible assets for backing supply commitments. Bidders may nominate existing or planned storage facilities, provided they are connected to the SEN and have sufficient annual injection capacity to cover the contracted volume.

As part of the bid evaluation process, participants must provide details on the technology, net capacity, capacity factor, expected annual generation, and whether the facility is operational or planned. For non-conventional renewable energy projects, available energy must be calculated using a P90 scenario, meaning there is a 90% probability that actual output will meet or exceed the declared value.

For storage systems, projected energy injections cannot be based on optimized economic dispatch. Instead, calculations must assume one daily charge-discharge cycle. Projects combining renewable generation with storage must separately report energy produced by the generation facility and energy supplied from the storage system.

The methodology allows solar, wind, hydropower, and other renewable projects to participate either independently or paired with batteries. However, the tender documents do not specifically mention photovoltaic technology or allocate a dedicated capacity block for solar projects.

For bids supported by new projects, winning suppliers must provide evidence of financial close, construction start orders, and project development progress. If delays threaten commercial operation, suppliers must secure temporary backup from another existing generation facility or storage system.

The rules also require awarded suppliers to comply with obligations under Chile’s General Electricity Services Law related to electricity generation from non-conventional renewable energy sources.

The first tender block is divided among Chile’s northern, central, southern, and far-southern zones, with annual allocations of 146 GWh, 1,000 GWh, 297 GWh, and 132 GWh, respectively. The second block allocates 117 GWh to the northern zone, 799 GWh to the central zone, 237 GWh to the southern zone, and 107 GWh to the far-southern zone.

Bids must be submitted by Dec. 4, 2026. Financial proposals and the reserve price will be opened on Jan. 5, 2027, while the contract award is scheduled for Jan. 13, 2027.