Energy independence: La Paz, Mexico to meet 100% of electricity demand through solar


In early December, officials from Grupotec and the Mexican government laid the foundation stone for a new solar PV project near La Paz at the southern end of Baja California. The Grupotec 1 will represent an investment of US$80 million, and feature 97,000 solar PV modules on an area of 44 hectares. The project will also incorporate an 11 MW battery storage system.

Present at the groundbreaking were officials from Mexican national utility CFE, with which the project has a 20-year power purchase agreement (PPA) through the Small Power Producer Program. Under this program CFE will purchase electricity from the plant at a fluctuating price based on local node prices.

This means that the project will operate on a basis similar to merchant power projects, despite holding a power purchase agreement. Another large PV project built near La Paz, the Aura Solar 1, was the first large “quasi-merchant” solar project in the world and also holds a PPA through the Small Power Producer program.


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