Mexico to add 1,323 MW solar, 689 MW wind after 3rd tender

Mexico's third long-term power auction has achieved a price of USD 20.57 (EUR 17.4) per MWh, one of the lowest seen globally, Mexican authorities confirmed on Wednesday, after having already announced preliminary results last week.

The tender will result in the construction of 15 clean power plants in the country, which will add 2,562 MW of capacity to the system. Solar accounts for a bit more than half of that capacity. Nine solar projects totalling 1,323 MW have secured contracts in the auction. There will be also five wind farms with a combined capacity of 689 MW and one 550-MW gas plant.

Following the three power auctions, the country will add 7,451 MW of clean generation capacity and another tender is coming next year. The fourth long-term power auction will be unveiled in the first half of 2018, Mexico's Secretary of Energy Pedro Joaquin Coldwell said in a statement.

In the competition contracts are awarded for electricity, clean energy certificates (CELs) and firm capacity. Enel SpA (BIT:ENEL) secured the biggest share of the power supply and CEL awards.

Below is a summary of the results by company, according to a document from the National Centre for Energy Control (CENACE).

The power, credits and firm capacity are purchased by the state-owned Comision Federal de Electricidad (CFE). The third auction for the first time also allowed other buyers besides CFE to participate, and Iberdrola and Cemex took advantage of that opportunity, securing power and CELs.

(USD 1 = EUR 0.844)

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