Auction will be the first of the current administration. Minister of Energy notes that the values will reflect the decrease in electricity production costs.
Tuesday, November 27, 2018.- A new electricity supply bid for distributors, the first in the current administration, prepares the government for 2019. This was confirmed yesterday by the Minister of Energy, Susana Jiménez, who indicated that the winners of the auction they will begin to supply energy in 2025, complying with the new terms and conditions related to these auctions in the reform approved in 2015.
"For the next year it is budgeted to launch a tender to supply regulated customers by the end of the year. As the law requires that it be in advance of five years, this means that they will be supplies as of the year 2025, "said the minister, who participated in a series of activities yesterday in Antofagasta.
"Studies are being done and precisely the fact that it is going to be done (the tender) in one more year, will also allow having more information in view of the demand, which is associated with greater economic growth, but also the behavior of regulated customers and migration of regulated customers to free customers, "said the authority, adding that, therefore, the amount of energy to be tendered will be known closer to the bidding stages.
"For the next year it is budgeted to launch a tender to supply regulated customers by the end of the year. As the law requires that it be in advance of five years, this means that they will be supplies as of the year 2025, "said the minister, who participated in a series of activities yesterday in Antofagasta.
"Studies are being done and precisely the fact that it is going to be done (the tender) in one more year, will also allow having more information in view of the demand, which is associated with greater economic growth, but also the behavior of regulated customers and migration of regulated customers to free customers, "said the authority, adding that, therefore, the amount of energy to be tendered will be known closer to the bidding stages.
Relevance for the sector.
This type of process attracts the interest of the entire local generator park, as it allows companies to access long-term contracts at known prices, which in turn makes generation projects viable and gives access to financing. In 2015, these went from being organized by the companies of the sector to the National Energy Commission.
Earlier this month, the new executive secretary of the CNE, José Venegas, had indicated that this entity could launch a tender by the end of 2019 and that, in that case, it would be more reduced in terms of the amount of energy, given the changes of demand and transfer of free to regulated customers that are occurring.
The authority also commented that the prices of the tender will reflect the changes that are taking place in the market, in relation to the lower cost of these technologies given their greater degree of maturity.
"What we have seen is a very considerable decline associated with technology, therefore one should expect low prices in the sense that these technologies have matured and have lowered their costs internationally," Jiménez said.
However, the minister said that these values will not necessarily be lower than those of the last process (see infographic), since the market presents changes.
"It will not be (the prices) necessarily lower than the last tender, but we are talking about ranges very different from what had been years ago when it was very difficult to get projects and were much longer projects.
Now we have renewable technologies with less difficulties to obtain permits, more limited construction periods and enormous potential. I see a very positive scenario for the development of our increasingly renewable matrix and a step towards decarbonisation, "he added.
Finally, he referred to the upcoming start-up of Engie's coal-fired power plant Infrastructure Energética Mejillones, which occurs in the middle of the decarbonisation plan. In this regard, he indicated that it is an earlier commitment and reflects different market conditions.
Earlier this month, the new executive secretary of the CNE, José Venegas, had indicated that this entity could launch a tender by the end of 2019 and that, in that case, it would be more reduced in terms of the amount of energy, given the changes of demand and transfer of free to regulated customers that are occurring.
The authority also commented that the prices of the tender will reflect the changes that are taking place in the market, in relation to the lower cost of these technologies given their greater degree of maturity.
"What we have seen is a very considerable decline associated with technology, therefore one should expect low prices in the sense that these technologies have matured and have lowered their costs internationally," Jiménez said.
However, the minister said that these values will not necessarily be lower than those of the last process (see infographic), since the market presents changes.
"It will not be (the prices) necessarily lower than the last tender, but we are talking about ranges very different from what had been years ago when it was very difficult to get projects and were much longer projects.
Now we have renewable technologies with less difficulties to obtain permits, more limited construction periods and enormous potential. I see a very positive scenario for the development of our increasingly renewable matrix and a step towards decarbonisation, "he added.
Finally, he referred to the upcoming start-up of Engie's coal-fired power plant Infrastructure Energética Mejillones, which occurs in the middle of the decarbonisation plan. In this regard, he indicated that it is an earlier commitment and reflects different market conditions.
