Verano Capital sets new record in Chile’s energy tender

Verano Capital

Verano Capital, an American project developer headquartered in Santiago, announced that the 47 MW solar project they initially developed was selected in Chile’s latest energy tender with a winning bid at $25.38/MWh.

The bid marks the lowest 24/7 block price combining solar and wind ever recorded in the history of energy tenders.

The winning bid was offered by a solar project which will be coupled with wind projects to offer a 24/7 supply over a 20-year period.

Dylan Rudney, CEO of Verano Capital, said, “It was an extremely competitive tender. Contracts were awarded at an average price of $32.50/MWh, which represents a 75 percent drop from the peak of $130/MWh reached in the 2013 tenders. These are the lowest renewable energy prices we have ever seen on a 24/7 energy auction anywhere in the world.”

The bid will be most directly beneficial to Chilean energy consumers, but it also underpins the changing trend in the energy industry, where conventional energy sources are no longer able to compete with increasingly low renewable energy costs, added Rudney.

Verano, which currently has offices in Chile, Argentina and the US, is set to expand to Colombia this year. It also submitted a project totalling 100 MW in Argentina’s upcoming renewable energy tender, whose results are awaited this month.

Rajani Baburajan

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