Chile’s National Energy Commission (CNE) has launched its 2026/01 electricity supply tender, seeking to contract 2.8 TWh of annual energy and capacity through 15-year agreements for regulated customers. The technology-neutral tender allows renewable energy, battery energy storage systems (BESS) and natural gas projects to compete while introducing stricter financing and project delivery requirements to strengthen supply security.
Key Overview
- Chile is tendering 2.8 TWh/year of electricity supply under 15-year contracts.
- Renewable energy, natural gas and battery storage projects are eligible to participate.
- Coal, petcoke, diesel and fuel oil projects are excluded.
- Bids are due by 4 December 2026, with awards scheduled for 13 January 2027.
- The tender supports Chile’s goal of expanding clean energy generation under its 2026–2030 Energy Roadmap.
Chile Opens Major Electricity Tender to Clean Energy and Storage Projects
Chile’s National Energy Commission (CNE) has published the final terms for its 2026/01 power supply tender, inviting developers to compete for 2.8 TWh/year of energy and capacity under long-term contracts serving regulated customers.
The tender will award 15-year supply contracts divided into two procurement blocks. The first covers 1.575 TWh/year for the 2029–2043 period, while the second covers 1.26 TWh/year for 2030–2044.
The procurement has been structured across four geographical zones and three time blocks, allowing suppliers to tailor bids based on regional demand and generation profiles.
Technology-Neutral Approach Expands Competition
Chile has adopted a technology-neutral procurement model that allows multiple generation technologies to compete.
Eligible participants include:
- Renewable energy projects
- Natural gas-fired generation
- Battery Energy Storage Systems (BESS)
- Hybrid renewable energy and storage facilities
However, the tender excludes projects powered by coal, petcoke, diesel and No. 6 fuel oil, reinforcing Chile’s gradual transition toward cleaner electricity generation.
Developers may submit either standalone generation or storage projects or combine both technologies into hybrid proposals.
This flexible approach is intended to encourage innovation while maintaining competition across different energy technologies capable of delivering reliable electricity.
Battery Storage Gains Larger Role
Battery Energy Storage Systems (BESS) have been explicitly recognised as eligible resources for meeting supply commitments.
Storage developers can participate using either existing or planned facilities, provided they are connected to Chile’s National Electric System (SEN) and demonstrate sufficient annual electricity injection capacity.
For bids supported by battery storage, annual energy calculations must assume one daily charge-discharge cycle rather than relying on optimised electricity market dispatch strategies.
The inclusion of standalone storage reflects the growing role batteries are expected to play in balancing renewable electricity generation and improving grid reliability.
Stricter Rules for Financing and Project Delivery
The final tender conditions introduce several tighter requirements compared with the preliminary draft.
Winning bidders must demonstrate stronger evidence of:
- Project financing
- Construction progress
- Commercial operation milestones
- Supply continuity
- Contractual guarantees
Developers using alternative financing structures instead of conventional bank loans must provide supporting financing agreements at least 18 months before the deadline.
The revised rules also require developers to report any event that could affect project interconnection before the contractual deadline, expanding reporting obligations beyond the previous three-month threshold.
This change is intended to improve oversight of project development and reduce delays that could threaten electricity supply.
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Longer Supply Continuity Requirements
Chile has strengthened protections for regulated electricity customers by extending supply continuity obligations.
If a contract is terminated early because of supplier non-compliance, the supplier must continue providing electricity and capacity for 36 to 48 months under the preliminary rules.
The longer obligation increases contractual responsibilities for successful bidders while reducing supply risks for electricity consumers.
The final terms also introduce clearer legal provisions governing backup generation arrangements, direct agreements and partial contract assignments between suppliers, generators and owners of backup assets.
Central Chile Receives Most Contracted Energy
The majority of electricity contracted through the tender will be allocated to Chile’s central region, where electricity demand is highest.
For the first procurement block, annual allocations include:
- Northern zone: 146 GWh
- Central zone: 1,000 GWh
- Southern zone: 297 GWh
- Far-southern zone: 132 GWh
The second block allocates:
- Northern zone: 117 GWh
- Central zone: 799 GWh
- Southern zone: 237 GWh
- Far-southern zone: 107 GWh
Combined, the central region accounts for approximately 63% of the contracted electricity volume in both procurement blocks, reflecting the country’s largest concentration of regulated electricity demand.
Supporting Chile’s Energy Transition
The tender forms part of Chile’s 2026–2030 Energy Roadmap, which aims to significantly expand clean electricity generation while strengthening long-term energy security.
Although the procurement does not include mandatory renewable energy quotas, its exclusion of high-emission fossil fuels and inclusion of battery storage provides greater opportunities for renewable energy developers.
The technology-neutral design also allows natural gas generation to complement variable renewable energy, helping maintain system reliability during the country’s energy transition.
As battery storage continues to grow alongside wind and solar generation, the tender is expected to attract a diverse range of projects capable of delivering affordable and reliable electricity over the next 15 years.
Outlook
Chile’s latest power tender represents one of the country’s most important electricity procurements in recent years, combining long-term supply contracts with stronger financial and operational requirements. By opening participation to renewable energy, natural gas and battery storage while excluding the most carbon-intensive fuels, the government is encouraging investment in a cleaner and more resilient electricity system. The enhanced financing, reporting and supply continuity rules are also expected to improve project execution, giving regulators greater confidence that winning projects will deliver reliable electricity throughout their contract periods.
FAQs
1. How much electricity is Chile procuring through the 2026/01 tender?
Chile is seeking to contract 2.8 TWh of electricity and capacity per year through 15-year supply agreements.
2. Which technologies are eligible to participate?
Renewable energy projects, natural gas-fired generation, Battery Energy Storage Systems (BESS) and hybrid renewable-storage projects are all eligible.
3. When are bids due?
Technical and administrative bids must be submitted by 4 December 2026, with contract awards scheduled for 13 January 2027.
4. Why is battery storage included in the tender?
Battery storage helps improve grid reliability by storing renewable electricity and supplying power when needed, supporting Chile’s transition to a cleaner and more flexible electricity system.
Sources: Enerdata, ESS News,Energía Estratégica
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