Chile’s Energy Commission terminates Canadian Solar contracts from 2017 auction

Chile’s National Energy Commission (CNE) has formally approved the early termination of the power supply contracts awarded to Canadian Solar Libertador Solar Holding SpA under the country’s national and international tender 2017/01.

According to an official statement, the decision is based on the failure to initiate energy delivery, a breach that activates the provisions of Article 21 of the tender rules, which allow the CNE to end contracts when generators do not meet their obligations.

The measure affects contracts between Canadian Solar and the following eight distribution companies operating in Chile’s regulated market:

• Enel Distribución Chile S.A.

• Compañía General de Electricidad S.A. (CGE)

• Empresa Eléctrica de la Frontera S.A.

• Empresa Eléctrica de Aisén S.A.

• Empresa Eléctrica de Magallanes S.A.

• Luz Osorno S.A.

• Sociedad Austral de Electricidad S.A.

• Empresa Eléctrica de Atacama S.A.

All agreements were signed under the 2017/01 competitive procurement process, one of the mechanisms established by the Chilean government to secure long-term supply for regulated customers through new renewable energy generation—including solar PV, wind power, and other low-carbon technologies.

The CNE emphasised that the contractual breach by Canadian Solar Libertador Solar Holding SpA was duly verified, and that the measure was taken in strict compliance with the current regulatory framework governing power purchase agreements (PPAs) for regulated markets.

With this resolution—formalised through Exempt Resolution No. 559—the contracts are officially deemed terminated as of December 2, 2024.

So far, Canadian Solar has not issued a public statement regarding the decision, which marks the early end of its contracted participation in Chile’s regulated supply segment.