Government Announces New Call for Offers for 2019 and Expects Prices to Remain Low



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A new call for tenders for the distribution of electricity to distributors, the first of the current administration, prepares the government for 2019. This was confirmed yesterday by the Minister of Finance. 39, Energy, Susana Jiménez, who said that the winners of the auction would begin to provide 2025 energy, meeting the new conditions related to these auctions in the reform approved in 2015.

"For the Next year, it is planned to launch a call for tenders for the supply of regulated customers by the end of the year.As the law requires five years in advance. this means that it will be supplies from 2025, "said the minister, who participated in a series of activities yesterday in Antofagasta.

"Studies are underway and precisely the fact that this will be done (the call for bids) in one year, will also provide more information given the demand, which is badociated with increased economic growth, but also the behavior of regulated customers and the migration of regulated customers to release customers, "said the authority, adding that the amount of energy to be submitted will therefore be known to closer to the auction stages.

Relevance to the sector

This type of process is of interest to the entire local generating fleet because it allows companies to have access to long-term contracts at known prices, allowing production projects and gives access to financing I feel In 2015, they had gone from the companies of the sector to the National Commission of Energy.

Earlier this month, the new executive secretary of the CNE, José Venegas, indicated that this entity could promote a call for tenders by the end of 2019 and that, in this case, this would be further reduced by terms of quantity of energy, given the evolution of demand and the transfer of free customers to regulated customers.

The authority also pointed out that the prices of the call for tenders will reflect the changes that are occurring in the market, in relation to the lower cost of these technologies because of their greater maturity.

"We have seen a very significant decline badociated with technology, so we have to expect low prices as these technologies have matured and reduced their costs internationally," Jiménez said. .

However, the minister said that these values ​​will not be lower than the last process (see infographic), because the market presents modifications.

"They will not (price) necessarily be lower than those of the last call for bids, but we are talking about very different ranges from what they were years ago at the time It was very difficult to get projects and they were much longer.

We now have renewable technologies with less difficulty obtaining permits, shorter construction times, and huge potential. I see a very positive scenario for the development of our increasingly renewable matrix and a step towards decarbonisation, "he added.

Finally, he mentioned the forthcoming start of the Infrastructure Energética Mejillones coal plant in Engie, which is happening in the middle of the decarbonisation plan. In this regard, he said that it was an earlier commitment reflecting different market conditions.

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