Mexico will add 5GW of new clean energy capacity, says Energy Secretary

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
During the winners' ceremony for Mexico's second power auction, SENER announced the imminent date for the country's third auction, as well as plans to add 5GW of new clean energy capacity. Source: SENER

Mexico will add 5GW of new clean energy to existing capacity, representing 170% growth in generation for wind and solar over the last 18 years, secretary of Energy Pedro Joaquín Coldwell has said.

At the ceremony of awarding contracts to the winners of the country’s second long-term power auction, SENER confirmed that the auctions are an effective mechanism for long-term investment and for establishing new domestic generation.

“By 2019, a total of 34 companies will invest US$6.6 billion for the construction of 52 new green power generation plans,” added Coldwell.

He also highlighted the winners for their feat of being new entrants to Mexico’s short-term electricity market. “You are a large group of pioneering investors, which shows the confidence that more than 10 countries from all latitudes, are depositing in the energy industry of Mexico,” he said.

The tariff prices achieved in Mexico’s second energy auction were highly competitive worldwide; on average 30% lower than the previous round, whilst being one of the most economical internationally. 

Mexico’s third auction date announced

During the ceremony, director general of the National Energy Control Centre (CENACE) Eduardo Meraz Ateca confirmed that Mexico’s third long-term power auction will be launched on 28 April 2017, with the ruling to come no later than 16 October 2017.

This is good news for the country, as the auctions have proved to be one of the most ostensible boons of the energy reform; resulting in long-term contracts to sell energy as well as clean energy certificates (CELs). They have also resulted in the opportunity for generators to finance low-cost investments that have allowed the country to be one step closer to realising its renewable energy goals.

After the results of the first auction, solar in Mexico was forecast by GTM Research to grow by 521% in 2016, and the International Energy Agency concurring with its forecast that Mexico is set to hit between 20-40GW of solar by 2040. The SENER’s announcement this week augments the idea that clean energy in Mexico will continue to accelerate. 

Read Next

July 30, 2021
German energy giant RWE has upgraded its earnings forecast for 2021 after “exceptionally positive” earnings trend
July 28, 2021
Generating electricity from renewable sources in Europe is now half the price of fossil fuels as polluting power production on the continent fails to recover from the pandemic and renewables grow, according to a new report by the Ember energy thinktank.
July 22, 2021
US Senate majority leader Chuck Schumer has failed in a bid to fast-track the US’ US$1.2 trillion infrastructure investment bill through the Senate. But there remains hope that further progress could be made as early as next Monday, when some Republican senators believe the bill will be fit to proceed.
July 19, 2021
Investors are turning away from fossil fuels and shifting into renewables because of falling costs and climate targets, with US banks lagging behind their European and Asian counterparts
PV Tech Premium
July 15, 2021
Earlier this week the US National Renewable Energy Laboratory (NREL) published its 2021 Annual Technology Baseline (ATB) document, detailing the continued reduction in the levelised cost of electricity (LCOE) of the country’s core generators. Liam Stoker takes a look at the data and discusses just how cheap solar, and solar-storage, could become.
PV Tech Premium
July 14, 2021
Reforms in energy policy since the election of Andrés Manuel López Obrador have led to increased uncertainty for solar developers in Mexico, with renewables auctions cancelled and changes to power dispatch priorities proposed. Alice Grundy looks at how the market can move forward once again.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
August 19, 2021
At 9am (PT) | 6pm (CEST)
Solar Media Events
August 25, 2021
Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021