Renewables come in at $33.47/MWh in Mexico's second auction

The preliminary results of the second long-term electricity auction in Mexico show that solar could be the big winner in the contest.

Of the total amount of energy awarded on Thursday, more than half corresponded to PV projects. Currently 4.8 terawatt-hours of energy (54%) and 4.9 million Clean Energy Certificates (CEL) (53%) were provisionally awarded to PV projects.

In total, 9.3 terawatt-hours and 8.9 million CEL were awarded to solar, wind, geothermal and hydroelectric projects. Wind represented 43% of total energy awarded and 41% of CEL.

At the same time PV projects were winners in the capacity auction. 184 MW per year was awarded to PV projects in the capacity category, which represented 15% of the 1,187 MW that were awarded in this category. 72% of this category corresponded to combined cycle gas plants.

The median price for the combination of energy and CEL was around $33.47 per megawatt-hour. As for capacity, the median price was $32.36 per megawatt per year.

In a press release, Mexico’s Secretary of Energy (SENER) says the average price of clean energy in the auction is "among the lowest prices reached at the international level". This price is 44% lower than the price ceiling of $60 per megawatt-hour set by state utility CFE, the sole buyer of power.

Among the provisional winners are the following companies: Alten Renewable Energy Mexico, AT Solar, Bluemex Power, an Engie Solar Trompezón consortium, a Fotowatio consortium, OPDE and X-Elio Energy