Grenergy has launched a reverse energy auction in Chile, offering 1.5 TWh of electricity through its subsidiary GR Power. The energy, drawn from solar generation and battery storage at its plants in northern and central Chile, covers both daytime and nighttime periods. Companies have until July 22 to submit applications.
Reverse auctions, where sellers compete to offer the lowest price, are a growing tool in Latin American electricity markets. By bundling dispatchable solar-plus-storage capacity, Grenergy aims to attract large industrial and commercial buyers seeking firm, low-carbon power. The 1.5 TWh volume represents a significant share of Chile's non-conventional renewable energy market, which has been expanding rapidly.
Grenergy, a Spanish developer with a strong footprint in South America, has been scaling its solar and storage portfolio across Chile. The auction structure shifts price risk to the seller, potentially lowering costs for buyers, but also requires bidders to have high operational confidence. The company did not disclose minimum pricing or the number of plants involved in the auction.
This move comes as Chile pushes toward its target of 70% renewable energy by 2030. The auction could pressure traditional thermal generators and grid operators to adapt to variable, stored-solar supply. However, critics argue that reliance on storage remains costly relative to hydro or gas peakers, especially during multi-day cloud cover events.
A counterpoint: Some energy analysts caution that reverse auctions can depress margins to unsustainable levels, especially for storage-heavy portfolios with high capital costs. If clearing prices fall too low, smaller developers may struggle to finance new projects, potentially limiting long-term competition in Chile's deregulated market.