Canadian Solar releases details of the 63MW project it won at the Mexico auction

It was hard to keep track of the details of all of the deals struck during the frenzy of Mexico’s first electricity auction following the nation’s energy reform. We knew that Canadian Solar was one of four solar power companies that won PV projects in the country, and the Chinese company has now released further details about the plant it will build.

The 63MW solar PV plant will be developed and built by Canadian Solar, in Aguascalientes, which is a north-central state in Mexico. It is expecting to take a little over two years to get the site operational, with a September 2018 date given for the plant to be connected to the grid.

"We are delighted to announce this win in Mexico which expands our late stage solar project pipeline in OECD countries, and positions us well for further growth in this important emerging market," said Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar. "We look forward to build on our momentum to expand our global presence and help accelerate the adoption of solar energy to mitigate climate change in the region and around the world as we continue to focus on our corporate vision of making a difference to the planet."

More expensive than the average

The company has a 15-year power purchase agreement in place with Mexico’s Comisión Federal de Electricidad and 20-year Clean Energy Certificates. It will sell the electricity at approximately US$47.95/MWh, which is one of the most expensive rates from the auction, where the average for PV was US$45.03/MWh according to the Mexican Association of Photovoltaic Solar Energy (Asolmex).

Over 1 GW of solar PV projects were awarded at the auction, with Enel Green Power winning the majority of them, accounting for almost three quarters of the solar capacity awarded. It was a popular event, which attracted 109 bidders, who submitted 468 technical offers between them. The next auction of that type is scheduled for April, according to Mexico’s Secretary of Energy.