Solar Dominates In Mexico’s Second Renewable Energy Auction

September 29th, 2016 by Saurabh

Originally published on CleanTechies.

The preliminary results of the much-awaited second renewable energy auction for Mexico were declared last week.

According to the state power regulator and grid operator, the auction was highly competitive, with average price of renewables and clean energy certificates (CEL) declared at US$33.47/MWh.

Solar dominated Mexico’s second power auction, with more than half of the total amount of energy awarded to solar PV projects. Under the auction, 4.8 TWh of energy (54%) and 4.9 million clean energy certificates (53%) were provisionally awarded to solar PV projects.

In total, 9.3 TWh and 8.9 million clean energy certificates were awarded to solar, wind, geothermal and hydroelectric projects. Wind energy projects constituted 43% of total energy awarded and 41% of clean energy certificates.

The average price of US$33.47/MWh for clean energy is “among the lowest prices reached at the international level” according to Mexico’s Secretary of Energy (SENER). The price is 44% lower than the ceiling price of US$60/MWh set by state utility CFE, the sole buyer of power.

At the auction, a total of 457 bids were submitted by 57 new companies, including 66 bidders participating via pre-qualification certificates. The provisional winners constituted companies like Alten Renewable Energy Mexico, AT Solar, Bluemex Power, an Engie Solar Trompezón consortium, Canadian Solar, a Fotowatio consortium, OPDE, and X-Elio Energy.

The preliminary results will be validated by CENACE and SENER and on the 30th of September, the government will announce the actual capacity it wishes to procure from solar, wind, and other renewable sectors.

During its first power auction held in March this year, Mexico awarded 1,720 MW of wind and solar projects.

Image by vectoropenstock.com for Cleantechies

Reprinted with permission.