Indicative offers start pouring in for Mexico's private renewables auction

Buyers participating in Mexico's first private long-term renewable power auction started presenting their indicative offers last week, according to a timetable published by the tender organiser Bravos Energia.

The Mexican energy consulting firm officially launched the new procurement process on June 27 with Aklara, the company behind the platform where the bidding will be conducted. Since then, the participants went through orientation sessions and provided feedback on auction rules and the preliminary version of the contract. The presentation of indicative offers on the part of the buyers will continue until November 21.

The first privately organised auction will award long-term contracts for capacity, electricity, clean energy certificates (CELs) and a new product, energy balancing. According to Bravos, the brokered contracts will have a term of five, 10 and 15 years. The auction mechanism is touted as offering each participant an opportunity to choose prices and products it wants to bid for, as well as diverse projects, locations and technologies.

The auction is open to qualified suppliers, last resort suppliers, market participant qualified users and non-market participant qualified users as buyers. The vendors can be power generators with both clean intermittent and firm sources, generators with conventional intermittent and firm sources, qualified suppliers, market participant qualified users and other actors in the power industry.

Participants can still register on the platform at www.concursoselectricos.com by October 23, 2019. After the presentation of economic offers, the auction results will be calculated and published on January 30, 2020.

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