Engie Units to Develop 400 Megawatts of Solar Power in Chile

Engie SA, the French energy company, is planning to develop 400 megawatts of solar power in Chile through two units that were shut out of an energy auction in the South American nation last week.

Engie Energia Chile and Solairedirect will jointly develop solar farms in Chile’s north and central regions, according to an e-mailed statement Tuesday from an Engie Energia press official. The two units will own the projects equally and Engie Energia has an option to acquire full control.

Final decisions on whether to proceed with a specific project will be made by Engie, the parent company, and will depend on conditions in Chile’s electricity market.

The two submitted a joint bid in the Aug. 17 power auction and didn’t win. The event was Chile’s biggest-ever electricity auction, awarding contracts for 12,430 gigawatt-hours a year, a third of what’s needed for the country’s regulated customers. The average price declined 40 percent from a similar event last year. Other bidders that went away empty handed included Colbun SA and AES Gener SA.

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