Mexico has published a preliminary schedule for a third power auction and is calling for bids, with the winners set to sign long-term power purchase agreements (PPAs) for clean energy supply, the energy secretariat SENER and the state energy control centre CENACE stated.
Public and private companies and the state will take part, as in the previous two auctions. However, unlike in last year’s auctions however, it will be possible to sell power to participants other than state-owned utility Comisión Federal de Electricidad (CFE). This will proceed through a clearing house, that will act as the counterpart in the contracts signed between the buyers and the winning sellers.
Mexico seeks to attract investment in renewables to meet Government targets: Under the Energy Transition Law, by 2050, half of Mexico's electricity is meant to originate from renewables, up from a 35% target in 2024. The Government is also keen on diversifying the country's energy mix and reducing reliance on fossil fuels.
For the upcoming power auction SENER will publish an operational handbook, pending regulatory approval, on how the clearing house will function. More information about the auction will be published in due course, including the characteristics of the bid round and the contract models.
It is not yet clear whether the upcoming auction will take into account the differing costs of electricity generation across the country, as did the second auction.
Bids submitted to CFE will be published on July 31, while those made to other participants will follow on August 14. Technical bids will follow in September. The results of the auction are scheduled to be announced at the end of November, the statement added, and projects must commence generating by January 2020.
Following the early stages of energy market reform, Mexico’s first auction saw a total of 1,720 MW of capacity awarded. Seven major wind and solar firms won 15-year contracts for large-scale projects, including SunPower Systems Mexico, Enel Green Power and JinkoSolar.
The second power auction resulted in a further 8.9 TWh of renewable supply contracts awarded, of which 4.8 TWh were for solar and 3.9 TWh for wind power projects.