Following the end of the Mexican government's state monopoly on electricity in 2013, Mexico have conducted their first power auction - awarding 1,720 megawatts of wind and solar energy.
The auction saw a total of severn energy companies winning contracts or energy certificates and included; Enel Green Power, SunPower, Recurrent Energy, Alten Renewable Energy, and Gestamp Wind.
Mexico have a target to achieve 35% of its energy from clean sources by 2024 and the outcoume of the auction is expected to assist the government in this long term goal.
Participation in the auction may have been higher than the Mexican government had anticipated: in total, 227 bids were made by 69 participants. The highest bid was made by UK-funded energy generation development platform Zuma Energía at 1.2 billion pesos (US$69/MWh). The 11 successful bundles of wind and solar projects and certificates were sold at an average price of US$41.80/MWh, with prices for solar specifically averaging at US$40.50/MWh.
Enel Green Power (EGP) was the largest winner in the auction, coming away with the rights to sign contracts for a 15-year energy supply and 20-year clean certificate supply. They will be investing approximately 1 billion US dollars into three PV solar projects that have a total installed capacity of nearly 1 GW.
“Mexico is a pivotal market for all serious players in this field due to its huge potential in clean energy and stable regulatory framework. The nearly 1 GW we have just been awarded, in addition to the capacity already in operation and under construction, have turned us into the main player in the country. We have worked hard to become one of the most competitive companies in many clean technologies and the positive outcome of this tender is another clear indication of the success of our growth strategy.” EGP CEO Francesco Venturini
Mexico has forecast as much as $62.5 billion in private investment in the Renewable Energy sector by 2018, so which this space!
If you are interested in recruiting or working in the Mexican renewable energy industry, contact Oscar Castro, Lead Recruitment Consultant - LATAM Renewable Energy at ALLEN & YORK - 01202 888 986