Low record prices for Mexican 2.6 GW third renewable auction

Mexico has selected 16 offers in the preliminary results of the country's third long-term electric power auction, receiving record low prices in the economic offers from developers.

Average renewable energy prices, for power plus Clean Energy Certificates (CEC), stood at US$20.57/MWh, which was 38.5% lower than in the second auction, and the price for power was US$36,253/MW/year. These prices are among the lowest achieved worldwide.

The projects will comprise 15 new power stations with a total generation capacity of 2,562 MW requiring estimated investment of US$2.37 billion over the next three years. The definitive results are scheduled to be announced and PPAs awarded on November 22.

As with the second auction, solar was the dominant clean power source, accounting for 55.4% of the energy to be sold  while wind power accounted for 44.7% of the electricity.

As we reported in May, the Secretariat of Energy (SENER) together with Mexico’s National Center for Energy Control (CENACE) launched the call for the new power auction in the country.

Th auction used similar mechanism as the previous renewable auction in 2016 except that power can be sold to other participants aside from state-owned Comision Federal de Electricidad (CFE) for the first time. 

The result of Mexico’s second power auction was a total of 8.9 TWh of renewable supply contracts, of which 3.9 TWh for wind and 4.8 TWh for solar power.

We have informed about other renewable projects in Mexico:

• 478 MW Agua Prieta II CSP plant in Agua Prieta
• 301.5 MW Central Fotovoltaica Ranchitos solar PV plant in Jalisco state
• 153 MW Cepeda Solar Park in Coahuila state
• 350 MW Solem solar PV project in Aguascalientes
• 49.5 MW Victoria wind farm in Güemez
• 180 MW Cubico Alten Aguascalientes Uno solar project in El Llano
• 180 MW wind farm in Zacatecas