Solar in Mexico to grow by 521% in 2016 after successful power auction

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
11 total projects earned contracts as a result of the auction. Image: Martin D / Flickr

Mexico wrapped up its first Clean Energy Auction for electricity and Clean Energy Certificates for purchase by CFE, Mexico’s sole utility.

The results from the first auction were impressive, with 11 projects earning contracts worth 4,000,000MWh per year, equaling out to 1,860MW of capacity. In addition, all 11 sites have earned contracts for a combined 4,000,000 Clean Energy Certificates (CELs). As a result, GTM research predicts solar in Mexico to increase by 521% in 2016, as opposed to the earlier 267% forecast. 

The winning projects are from a number of developers, including Enel Green Power (992MW), SunPower (509MW), Jinko Solar (241MW), Recurrent Energy (62MW), Sol de Insurgentes (27MW) and Photoemeris Sustentable (29MW). The average contract price was US$50.7 per MW/h.

Out of the total of 5.38 million megawatt-hours of energy awarded in auction, PV earned 74%, while wind won the remaining 26%.

Earlier in 2016, GTM Research predicted a total of 382MW of PV in Mexico this year, with only 300MW of that coming from utility-scale installations. In late January, consensus at Solar Summit Mexico was that solar would not win more than 200MW at the auction, far below the 1,860MW awarded. 

Due to the new totals, GTM Research predicts total demand at 646MW in 2016 (an additional 264MW) and 1,513MW in 2017 (an additional 836MW) directly related to the auction. That stands as a 104% percent jump in the projections across the two combined years.

The pressure is on for construction on the projects to start soon as the January-March 2018 deadlines loom. With an ambitious 3.4GW now planned between 2016 and 2018, according to GTM's research, in remains to be seen whether Mexico will execute according to plan. Whilst the results of the auction and conjunctive predicted increase in PV put Mexico's solar development in a positive light, there is still the challenge of installing all the awarded capacity on time. 

Additional reporting by Danielle Ola.

Read Next

February 25, 2021
The Global Wind Energy Council (GWEC) and Global Solar Council (GSC) have called on Mexican lawmakers to prevent changes to the country’s Electricity Act, Ley de la Industria Electrica (LIE), which pose what they call “an unequivocal threat" to private investment in clean energy.
August 5, 2020
Mexico’s president has pledged to change power dispatch rules, shunting privately owned renewables down the pecking order, in the latest twist of an ongoing spat between his regime and the clean energy sector.
July 14, 2020
Canadian solar companies have complained about the Mexican government’s treatment of them, warning that the regime may have already breached a new trade deal signed between the two countries earlier this month.
July 1, 2020
Renewable energy companies operating in Mexico are to be formally accused of fraud in the latest twist in a simmering dispute between the country’s government and solar and wind developers.
May 20, 2020
Talk in local press of two provisional suspensions brings new twist to controversy since state paralysed green energy project connections, triggering protests from EU and Canada.
May 19, 2020
Major European economies and Ottawa ask for meeting with López Obrador’s government to address concerns over new restrictions to green energy projects on COVID-19 “stability” grounds.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
May 26, 2021
Session 1 - 7:00 AM (BST) | Session 2 - 5:00 PM (BST)
Solar Media Events
June 15, 2021
Solar Media Events
July 6, 2021
Solar Media Events
August 24, 2021