The new supply tender for regulated customers in Chile comes at a key moment for the electricity market: it puts long-term contracts back into play, incorporates deeper time-of-use segmentation, and recognizes storage as part of the backup solutions for renewable energy offers.
“The main challenge is to increase effective competition . Recent tenders have shown highly concentrated awards, rising prices, and increasing systemic costs, which warrants reviewing whether there are areas to improve the design for the benefit of consumers,” warned Rafael Loyola , executive director of the Renewable Generation Association ( AGR ), in an interview with Energía Estratégica .
The anticipation surrounding the 2026/01 Supply Tender stems from its scale and the timing of its launch. The process envisions 2,835 GWh/year for regulated customers, 15-year contracts, and supply commencement between 2029 and 2030 , in a market that needs new signals for renewable energy projects, storage, and solutions capable of delivering energy at different times of day.
“This is progress because it allows for a better reflection of each technology's contribution to the system. However, it is important to monitor that supply requirements do not end up favoring only players with portfolios of operating assets ,” stated the AGR representative.
The warning focuses on the practical design of the tender. Time blocks and storage recognition may open opportunities for more flexible bids, but they also raise the bar for those who must demonstrate supply capacity at different times of the day.
That requirement may be more accessible for companies with operational plants, installed batteries, diversified portfolios or greater financial backing than for new renewable projects that still need to close permits, financing, construction and connection.
Therefore, for AGR, the discussion is not only about how much renewable energy is tendered or what role storage plays, but about whether the conditions allow for an increase in the number of real bidders and avoid a new concentration of awards.
The tender includes two supply blocks. Block No. 1 totals 1575 GWh/year , starting on January 1, 2029 , and ending on December 31, 2043. Block No. 2 covers 1260 GWh/year , with supply between January 1, 2030 , and December 31, 2044 .
The preliminary timetable sets the call for tenders for July 1, 2026 , the consultation period until August 28 , the submission of proposals on December 4, 2026 , the economic opening on January 5, 2027 , and the award for January 2027.
“The most positive aspect is the deepening of time blocks , which better recognizes the value of energy according to the time of supply and opens up opportunities for renewables and storage ,” Loyola noted.
The design divides the demand into three segments. Block A covers from 00:00 to 07:59 and from 23:00 to 23:59 ; Block B runs from 08:00 to 17:59 ; and Block C comprises the period between 18:00 and 22:59 .
This segmentation allows for a more precise distinction of each technology's hourly contribution. Solar energy can be more competitive during the daytime, while storage allows generation to be shifted to times of higher demand, especially during the evening peak .
The terms and conditions include specific backup requirements. Bidders must declare the generation technology or storage system that supports their bid, along with information on capacity, plant factor, annual energy, and the condition of existing or planned installations.
Furthermore, the backup cannot come from technologies such as coal, petcoke, diesel oil or fuel oil No. 6 , which sets a favorable signal for renewable, hybrid and battery solutions connected to the National Electric System.
For each offered time block, the ratio between expected backup capacity and maximum awardable energy must be equal to or greater than 0.6 in each projected year. Overall, the ratio between backup capacity and potential contracting must be equal to or greater than 1 .
“Backup mechanisms are necessary, but they must also avoid becoming barriers to entry that reduce competition and the participation of new players ,” Loyola said.
Recent events reinforce this concern. In 2022 , the supply tender awarded 777 GWh/year to Zapaleri and FRV, with an average price close to USD 37.4/MWh .
In 2023/01 , Enel Generación Chile was awarded the entire tendered supply, for 3600 GWh/year , at a price of USD 56,679/MWh . In 2025/01 , Enel was again the sole winner, with 100% of the 3360 GWh/year at USD 64,499/MWh .
“The signal is positive because it offers long-term contracts , but it maintains significant restrictions. The three-year deadline for starting supply makes it difficult for new investments and new developments to enter the market,” the expert stated.
This point has a particular impact on greenfield projects , which must not only compete on price. They must also demonstrate the ability to move forward with permits, financing, construction, connection, and the start of commercial operation before committing to firm supply.
In contrast, companies with existing power plants, current contracts, installed batteries, or diversified technology portfolios could face the process with more leeway to support bids, manage risks, and cover different time blocks.
“It is better prepared than previous tenders. The scheduling design sends signals that value flexibility and favor the integration of storage and the composition of 24/7 renewable energy offers at competitive prices,” stated the CEO of AGR.
The signal comes at a time of strong renewable energy expansion. During 2025 , solar and wind power generation reached its highest level of participation in the Chilean National Electric System, with approximately 38% of the total energy injected.
If other renewable sources, such as hydropower , are included, around two-thirds of the electricity came from clean technologies. At certain times of the year, solar and wind power generation covered up to 79% of demand .
Energy storage also gained operational scale. BESS systems added approximately 2 TWh in the year, more than four times the amount generated by diesel technology. Furthermore, the country already had nearly 1,700 MW of battery storage capacity in operation , plus 600 MW undergoing testing and another 4,500 MW under construction .
“The main risk remains the enabling infrastructure , especially transmission . Chile has a significant portfolio of renewable projects, but it needs the networks and regulations to advance at the same pace,” Loyola warned.
AGR proposes three priority adjustments before the final version of the terms and conditions. The first is to incorporate mechanisms that increase effective competition and discourage bids conditioned on securing an excessive share of the tendered energy when they come from dominant players .
The second point is to review the combination of start date and duration of contracts , since three years to start supply may limit the entry of new projects and new investments.
The third seeks to strengthen the participation of renewables with storage , explicitly recognizing the value of flexibility and the ability to supply at different times of the day.
Looking ahead to the next semester, the entity's agenda will include correcting regulatory distortions that affect competition, reforming the PMGD regime, integrating storage, and developing a tariff system consistent with an increasingly renewable energy mix.
“We share a common vision: a competitive market and a level playing field so that clean energy can compete on equal terms. The rules must reward efficiency and innovation , not the regulatory privileges that some market players strive to maintain,” the leader concluded.