Mexico launches call for second electricity auction in September

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Mexico’s Secretariat of Energy (SENER) has approved the call for the second electricity auction following Mexico’s energy reform. The auction will be resolved before the end of September 2016.

The nation’s National Center for Energy Control (CENACE) published the call for the auction today, according to a press release by SENER. Auction of Clean Energy Certificates (CEL) is expected, and there also exists the possibility of an auction for firm capacity.

The publication of the first version of the rules is set for May 13, and the publication of the bids for July 4.

Similar to the first auction which was completed in March, the new auction will involve long-term power purchase agreements with Mexico’s state utility CFE. CFE will set the volume of sales awarded in the auction.

Similarly, in the new auction clean energy technologies will participate together and compete against each other.

Mexico created an electricity market with its energy reform, which was initiated in 2013. This market began to operate in the beginning of this year, and the CEL program will begin to apply in 2018.

In the first national auction following energy reform, which was completed in March, contracts were awarded which translate to roughly 1.7 GW of PV projects.

3/4 of the 5.4 terawatt-hours awarded in the auction went to PV projects and the remaining one quarter for wind projects. According to SENER, the prices in the auction were under US$48 per megawatt-hour.

Under the framework of the awards in the first auction various companies announced solar projects. First among these businesses was Italy’s Enel, which plans to build 3 PV plants for a total of around 1 GW, SunPower, which says it will build around 500 MW, JinkoSolar, which plans 188 MW, and Canadian Solar, which has announced a 63 MW project.

This article was translated by Christian Roselund. For the original in Spanish, please see the pv magazine Latinoamérica website.