Chilean advisory firm Zona Energía, a subsidiary of construction firm Grupo EBCO, plans to launch a private renewables auction in the country, according to the firm’s website.
The period for interested buyers to register opened on 1 January and will run through 30 June. Zona will publish tender documents in July with the goal of accepting offers and awarding contracts by 4Q20.
The auction aims to attract buyers looking to acquire power starting in 2021 and 2022 with five-year contracts. Clients will be able to select a contract termination date between 31 March 2026 and 31 March 2027.
Daniel Walker, partner with Zona Energía, stated that while it would be irresponsible to estimate the amount of energy that the auction will tender, there are more than 1,000 qualifying companies that need to renew energy contracts, together representing more than 8,000 GWh per year.
Walker added that the auction provides a mechanism by which all renewable energy consumers, regardless of their size, can group together to obtain better prices than if they negotiated individually.