Mexico Selects 23 Bidders For $4 Billion Renewable Energy Projects Auction

Originally published on Planetsave.

According to Energy Business Review, Mexico has selected 23 bidders for the development of $4 billion worth of photovoltaic solar, wind, and other clean energy projects. This selection came as a result of the second round of its power auction.

National Energy Control Center (CENACE) of Mexico organized the second long-term energy auction for the wholesale electric power market.

Over the next three years, the selected firms will build 36 new clean energy power plants including wind and solar capacity.

In total, the second tender round has awarded rights to build 8,909 GWh of capacity, of which 54% is for photovoltaic plants and 43% for wind farms.

Mexico’s first electricity auction followed sweeping energy sector reform in the nation which began in January. In this auction, clean energy certificates will be auctioned off, in addition to energy and capacity.

CENACE has stated this recent 8,909 GWh awarded capacity accounts for approximately 3% of Mexico’s annual electricity generation.

The winners comprise Acciona Energy, Iberdrola, Enel, Zuma Energia, Engie, and IEnova, among others, reported Recharge.

Acciona Energía, in a joint venture with Mexico’s Tuto Energy, received rights to supply 478 GWh of renewable energy in the second energy auction.

Mexico Energy Secretary Joaquín Coldwell said that the tender round received $33.47/MWh on average, representing 30% lower prices than in the previous auction.

Mexico plans to generate 35% of its total power from renewable sources by 2024 while reducing greenhouse gas emissions, reported The Wall Street Journal.

Electricity which is generated from the proposed projects is expected to be sold to state-owned utility Comisión Federal de Electricidad (CFE) under long-term contracts.

Acciona said that the average bidding price represents 44.2% below the maximum price set by the CFE.

Images via Shutterstock and Google Creative Commons

Reprinted with permission.