Chile Gets 1.5 TWh Clean Energy in Historic Auction

Spanish power producer Grenergy is auctioning off 1.5 terawatt-hours of yearly renewable electricity in Chile, marking one of the largest private clean energy deals in Latin America.

The auction offers companies and power retailers a chance to lock in long-term renewable energy contracts backed by solar panels and battery storage systems. What makes this special is the mix: 960 gigawatt-hours per year will come from batteries for nighttime power, while 540 gigawatt-hours will flow directly from solar panels during the day.

Grenergy is running the auction through its subsidiary GR Power on the Match Energia marketplace. Buyers can bid on the full amount or grab smaller 20-gigawatt-hour chunks, with contracts lasting anywhere from six to 15 years.

The electricity will flow from Grenergy's solar farms and storage facilities across northern and central Chile starting in mid-2028. The company has been building its renewable footprint aggressively in the region, with its Oasis de Atacama project already boasting 2.5 gigawatts of solar capacity and 14 gigawatt-hours of battery storage.

This auction represents Grenergy's third time hosting its own competitive tender for renewable energy. The Madrid-based company held its first such auction in Latin America back in 2022, pioneering a model that lets them connect buyers directly with clean power.

The Ripple Effect

Grenergy's investment spree tells a bigger story about renewable energy's momentum. The company recently bumped its spending plan through 2028 to 3.7 billion euros, with nearly half focused on Chile alone.

The company aims to hit 5 gigawatts of solar capacity by 2026 and grow its battery storage to 4.1 gigawatt-hours. Their worldwide pipeline now includes about 12 gigawatts of solar projects in various stages of development.

Battery storage is the secret sauce here. By storing daytime solar power for nighttime use, these systems solve one of renewable energy's biggest challenges: keeping the lights on after sunset without burning fossil fuels.

Chile's sunny Atacama Desert and strong renewable energy policies have turned the country into a testing ground for next-generation clean power projects. Companies like Grenergy are proving that large-scale renewable energy with battery backup can compete directly with traditional power sources.

The auction closes for inquiries on July 7, with final registration ending July 22.