Mexico announces transmission line PPP

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Mexico announces transmission line PPP

Mexico Secretariat of Energy (SENER) and the Federal Electricity Commission (CFEhave announced the setting of the basis for the development of the transmission line "Línea de Transmisión de Corriente Directa de Alto Voltaje"  on PPP model.

The project will have a transmission capacity of 3,000 MW and will run from Tehuantepec to the center of the country through a 1200 km circuit.

The procurement will be structured as an open competitive tender with national and international participation. The project is scheduled to be awarded in April 2017.

The "Línea de Transmisión de Corriente Directa de Alto Voltaje", with an estimated total investment around US$1200 million, will allow transmitting energy generated from renewable resources, while reducing power losses in transmission.

In early October, we reported that the Goverment of Mexico released the results of the second renewable energy auction of the country, with more than half of the total amount of energy awarded to solar PV projects.

A total of 66 companies qualified to bid in Mexico’s second power auction; 57 submitted offers and 23 were awarded contracts. A total of 8,909 GWh was awarded, of which 54% corresponds to photovoltaic plants and 43% to wind farms. The auction was highly competitive, with average price of renewables and clean energy certificates (CEL) declared at US$33.47/MWh, a 44.2% below the maximum price set by the CFE.

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