Mexico first power auction awards 1,750 MW to wind, solar firms

Mexico is seeking to add 20 gigawatts of clean energy in the next 15 years.
Mexico is seeking to add 20 gigawatts of clean energy in the next 15 years.

By Vanessa Dezem  and Adam Williams / Bloomberg

Renewable energy developers won contracts to produce 1,720 megawatts of power in Mexico during the country’s first-ever private auction after the government ended a decades-long state electricity monopoly in 2013.

Seven wind and solar companies including Enel Green Power, SunPower Systems Mexico and Recurrent Energy won 15-year contracts to rights to provide the state-owned Comision Federal de Electricidad with power beginning in 2018, Cesar Emiliano Hernandez, Mexico’s deputy electricity minister, said in Mexico City.

The contracts are expected to generate more than $2.1 billion in investment by 2018, he said.

“The results were better than some of the most successful auctions in the world,” Hernandez said in a press conference in Mexico City. “Many top level international companies competed and Mexico will receive a very important amount of investment.”

Mexico is restructuring its energy markets in an effort to spur billions in investment after a historic overhaul approved in 2013 to open state-run monopolies in the oil and electricity industries. The government has set a goal of getting 35 percent of its energy from clean sources by 2024, up from 25 percent now.

http://www.bloomberg.com/news/articles/2016-03-29/mexico-first-power-auction-awards-1-720-megawatts-of-wind-solar

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