Mexico’s First Power Auction Awards 1,720 MW of Wind, Solar

Renewable energy developers won contracts to produce 1,720 MW of power in Mexico during the country’s first-ever private auction, after the government ended decades long state electricity monopoly in 2013.

Seven wind and solar companies including Enel Green Power, SunPower Systems Mexico, and Recurrent Energy won 15-year contracts to rights to provide the state-owned Comision Federal de Electricidad with power beginning in 2018, Cesar Emiliano Hernandez, Mexico’s deputy electricity minister, said in Mexico City. The contracts are expected to generate more than $2.1 billion in investment by 2018, he said.The Mexican government has set a goal of getting 35 per cent of its energy from clean sources by 2024, up from 25 per cent now. Eleven packages of wind and solar projects and certificates were sold at an average price of $41.80 per megawatt-hour. Solar energy accounted for 1,100 MW sold, and 620 MW of wind projects were awarded long-term contracts. “The auction was an important signal to Mexico’s energy market,” said Lilian Alves, a New Energy Finance analyst in Sao Paulo.

Source: www.renewableenergyworld.com