Aela Energía wins 65% of power supply tender for non-regulated clients

Santiago, November 1o, 2015

The company, whose shareholders are the private equity fund Actis (60%) and NCRE project developer Mainstream Renewable Power (40%), was awarded 768 GWh/year from the last power supply tender for non-regulated clients; an important milestone for the electric power market of Chile.

Last October 26th, the National Energy Commission (CNE) shared the results of the power supply tender for non-regulated clients, an auction divided in hourly blocks at which 38 bidders participated for 1.200 GWh/year. Aela Energía was the big winner, awarding 768 GWh, almost 65% of the supply.

Aela Energía wins 65% of power supply tender for non-regulated clients

The power supply tender was carried out for three hourly blocks (4-A, 4-B y 4-C), for 20 years and with a supply beginning from January 2017. In all of them Aela Energía gained a share.

Sergio del Campo, the company CEO, highlighted this achievement as a milestone that strengthen Aela‘s presence in Chile, as well as its investment plan. “It is an important result that contributes to achieve our goal of supplying 600 MW to the grid, with an investment (equity plus debt) of about US$1,400 million for the next three years”.

According to Daniel Garrido, Aela Energía’s Commercial Manager, the power supply tender results are a proof of Aela’s projects quality: “Our portfolio, with high quality and geographically distributed projects (which minimizes the risk of decoupling), made a difference and had us winning this tender competing not only with other NCRE power generators, but also with conventional generators”. Alongside this, the robustness of Aela’s shareholders; Mainstream Renewable Power (40%) and Actis (60%), was fundamental. On the one hand, Mainstream has an outstanding background as NCRE developer in the world and Chile (with more than 2,300 MW in developing projects in Chile); Actis, an English private equity fund, with presence in Latin-America, Africa and Asia, has broad experience in energy worldwide.

From the projects portfolio of Aela Energía, the wind projects Sarco (158 MW), Alena (44 MW), San Manuel (26 MW) and Aurora (106 MW) are highlighted; in PV solar technology, the projects are Estancia (68 MW ac) and Tata Inti (75 MW ac).

“The business model that allowed us to offer the tender prices (the process had an average price of 79.3 dollars per MWh, substantially lowering prices of 2013 tender) is a mix of very competitive projects and, also, very high factor plants. Wind farm Cuel (33 MW) has a capacity factor of around 33-34%, one of the best performances in the Chilean market for this kind of technology. The projects of our pipeline have capacity factors of up to 40%”, Daniel Garrido states.

The aforementioned elements, company executives explain, provides Aela Energía’s business model with great flexibility, therefore, “today we can offer in hourly blocks as well as during the 24 hours of a day, regardless of the client’s load curve. From the commercial structure point of view, we are very flexible and can provide what the client needs”, Garrido indicates.