Chile's 2026/01 Supply Tender comes with a warning signal for the market: more than the volume to be awarded, the critical point will be how much competitive appetite it manages to arouse among generators.
For Andrés Romero , partner and director of Valgesta Nueva Energía , the design should not be read in isolation from the deterioration that the regulated segment has suffered after the tariff freeze and the intervention of contracts.
“I think we should make some adjustments to the bidding process to make it more attractive,” he said in an interview with Energía Estratégica.
It's worth remembering that the process includes 2,835 GWh annually for regulated customers, divided into two supply blocks. The first comprises 1,575 GWh/year , starting in 2029 and lasting until 2043; the second, 1,260 GWh/year , from 2030 to 2044. In both cases, these are 15-year contracts.
Romero's diagnosis, on the other hand, points directly to the competitive landscape. "The regulated supply tender was made more risky by the price freeze, among other issues. Lately, what we've seen is that there isn't much appetite to compete in that market," he warned.
The concern is significant. In Tender 2023/01, for 3,600 GWh/year , five companies submitted bids, and Enel Generación Chile ultimately won the entire supply at USD 56.679 per MWh . In Tender 2025/01, although six companies participated and bids were received equivalent to 3.9 times the required energy, Enel again secured 100% of the contract , for 3,360 GWh annually , at USD 64.499 per MWh .
This precedent raises a question about the true extent of competition in the regulated market. For Romero, the focus should be on restoring contractual certainty.
“We need to have a formula to reduce the risk of them interfering in the contract again,” he said.
He elaborated: “When I went out to promote Chilean tenders, the first thing we emphasized was the legal certainty, that it was a contract between private parties and that it could only be modified through arbitration. Unfortunately, the contracts were intervened in by law, resulting in a debt of USD 6 billion. The weight of the effective legal certainty that these contracts provided was lost.”
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This point is key to bankability . In long-term contracts, the perception of regulatory risk impacts price, financing, guarantees, and the decision to enter the market. This is especially true when the tender includes time blocks, a variable demand component, and storage backup, in a system with high renewable energy penetration and significant changes in consumption patterns.
Romero also raised another need: “On the other hand, I think the deadlines need to be adjusted a bit, as they may be set that way due to the guarantees. I think they need to be reviewed again.”
In his view, the design should combine long-term contracts with shorter-term instruments to reduce mismatches in the face of demand variations.
The preliminary structure, however, maintains a focus on long-term contracts. The blocks are organized into four zones and three time periods, with a variable component equivalent to 5% of the annual base energy required to absorb demand deviations. According to Romero, this margin does not replace the need for medium- and short-term instruments that act as a buffer against changes in actual consumption.
“I would adjust the funds allocated to the tenders. I would have a long-term scheme for a significant percentage of the energy, the projected 70% to 80%, and then I would have medium- and short-term contracts, creating a buffer that adjusts to demand,” he proposed.
He explained: “In this way, long-term contracts would effectively not be at risk of falling demand and becoming mismatched, as happened a few years ago. I think that also provides certainty for financial flows.”
The timeline still allows for the discussion to escalate. The consultation period closes on August 28, 2026 , and the National Energy Commission (CNE) has until October 2 to respond to comments and make corrections, amendments, or additions to the bidding documents. The submission of bids is scheduled for December 4 , the opening of the financial bids for January 5, 2027 , and the awarding of the contract for January 13 .
Romero does not rule out the possibility of changes being incorporated during the process. “It will depend somewhat on the authority's understanding of the matter. The National Electoral Council (CNE) complied with the legally mandated deadlines, but I believe that if the authority decides in the meantime, 'we are going to strengthen this,' there may be time to do so,” he stated.
The tender, then, will not only measure price. It will also serve as a confidence barometer for a sector that needs to demonstrate renewed competition, depth of supply, and sufficient conditions to commit to long-term energy contracts.
“We need to get back on the path of greater competition,” Romero summarized. And he concluded: “Before launching this process, a more in-depth agenda of corrective measures should have been developed to make it interesting again.”