Enel Generación Chile won the second supply tender of 2025 in Chile.
The company was the sole bidder for the 1,470 GWh/year contract to supply regulated customers during 2026, at an average price of US$98.699/MWh. The process design considered a one-year supply period for a total of 1,470 GWh/year, distributed across two supply zones: Zone 2, with 298 GWh/year, and Zone 3, with 1,172 GWh/year.
Each of the two zonal blocks is, in turn, composed of three time blocks, allowing for adequate adaptation to the operating conditions of the electrical system. Furthermore, the application of the Price Adjustment Mechanism, typical of exceptional short-term tenders, was considered. This tool allows for adjusting the hourly contract price based on the actual operating conditions of the electrical system, thus mitigating risks, incentivizing participation, and enabling the sharing of costs and benefits between supplier and customer. The evaluation of the bids was carried out using an algorithm that compares the Levelized Price of the proposals, which corresponds to the equivalent present value of the offered price, taking into account its indexation formula.
For this purpose, public projections of fuel price indices from the October 2025 Short Term Energy Outlook , prepared by the US , were used.
Energy Information Administration. The reserve price was set at US$129.108/MWh, equivalent to 1.5 times the energy component of the Average Market Price (E PMM) in effect at the time of the call. However, although the awarded price was US$98.699/MWh, the operation of the Adjustment Mechanism could result in significantly lower payments to customers.
This is because this Adjustment Mechanism modifies the price paid by the customer based on the marginal cost of the system, and the electrical system's operating projections anticipate low average marginal costs, which will ultimately depend on the hydrological and operational conditions of 2026. In this context, a total of 7 companies submitted bids on December 2nd, far exceeding the energy tendered: 72 bids were received, equivalent to 2.5 times the required energy. Following the defined procedure, the combination of bids that minimizes the weighted average Levelized Price across all zonal and time blocks was selected, while simultaneously ensuring the full supply of the tendered energy. The acting Executive Secretary of the National Energy Commission, Mauricio Funes , stated that "the results of this tender confirm the validity and effectiveness of the mechanisms established by electricity legislation to ensure supply in complex scenarios, such as the one expected in 2026." "The fact that the winning company has begun supplying the product in the short term demonstrates that the institutional framework is functioning properly and that market participants have a high level of confidence in the certainty and reliability of the process," he added. "The market response sends a positive signal, in a context that is naturally influenced by market variables."
From that perspective, we expect to have a mix of contracts that will allow customers to access energy at competitive prices, both in the long and short term, said Juan Meriches , CEO of Empresas Eléctricas AG. "In this tender, we faced limited demand, but with an offer that was 2.5 times higher and with the participation of seven bidders, which clearly reflects market interest."
While as a sector we always prioritize longer-term solutions, this first experience demonstrates that the mechanism works and provides certainty to both customers and the market.
Finally, we congratulate the winning company on the result obtained and thank again all those who contributed to the successful development of this process, said Patricio Molina, General Manager of the National Federation of Electric Cooperatives (Fenacopel).