Mexico’s grid operator CENACE has announced the launch of the country’s third long-term electricity auction on April 28th. Eduardo Meraz Ateca, the Director General of CENACE, commented that for the first time Mexico will have additional distributors buying electricity at the auction outside of the longstanding utility, CFE. This auction is expected to continue to accelerate the country’s clean energy projects. The International Energy Agency has forecasted that installed capacity from solar energy alone could reach 40 GW by 2040.
Mexico recently awarded contracts to the winners of the 2nd long-term power auction of the new Wholesale Electricity Market which took place in 2016. With these contracts, it is expected that Mexico will add some 5 GW of new clean energy to its existing capacity. Minister of Energy Pedro Joaquin Coldwell announced that “This will represent a 170% growth in generation for wind and solar power compared to the last 18 years.”
The Ministry of Energy (SENER) expects that, by 2019, US$6.6 billion will be invested in the construction of 52 new clean power generation plants. A total of 34 companies from 12 different countries will participate in these projects, which will be carried out in 15 states across Mexico. SENER’s Director of Electricity, César Hernández Ochoa, stated that the auctions are an “effective mechanism for long-term investment in clean energy and for establishing new domestic generation.”
Prices obtained in the first and second auctions were highly competitive worldwide. In less than a year between the two auctions, the average price per package (electricity and clean energy certificates) dropped 30%, cementing Mexico’s place as one of the globe’s most competitive clean energy markets.
Moreover, SENER has also recently presented the requirements for the installation of distributed generation power plants (projects with a capacity of less than 0.5 MW) and their interconnection to the grid. This is a significant development considering that 97% of the distributed solar PV in Mexico is derived from rooftop installations and will be a boost for the industry.
Mexico’s leading clean energy congress, MIREC WEEK, will celebrate its 6th anniversary this year and will provide a unique platform to discuss the auction’s results as well as the challenges and opportunities ahead for the electricity market in Mexico. The congress will take place at the Camino Real Hotel in Polanco, Mexico City, from 8 – 12 May, just after the country’s third long-term auction process is expected to begin.
The event will gather a high-level faculty of speakers, including representatives from the Mexican government, global thought leaders, regulatory agencies, energy generators, solar and wind developers, utilities and commercial and industrial energy users. Attendees from Mexico and across the globe will explore the challenges and opportunities presented by the new market, as well as the development and financing of Mexican clean energy projects in the coming years. Confirmed speakers include:
- Felipe Calderón Hinojosa, former President of Mexico (2008-2012)
- Jeremy Legget, Founder, Solarcentury & Solaraid
- Danny Kennedy, Managing Director, California Clean Energy Fund
- Jorge Gutiérrez Vera, Head of Energy, Grupo BAL
- Roberto de Diego Arozamena, CEO, Abdul Latif Jameel Energy
- León de Paul, Chief Risk Officer, Citibanamex
- Adrián Katzew, General Manager, Zuma Energía
- Justin Bryon, Managing Director, Thermion
An expected audience of more than 1500 participants will attend MIREC WEEK 2017, including major event partners such as JA Solar, BayWa r.e., ET Solar, Huawei, JEMA, Longi, Thesan, TMEIC, Gamesa, Ingeteam, Jinko Solar, KACO New Energy, Power Electronics, Trina Solar, TÜV Rheinland, UKC Holdings, UL AWS Truepower, Zuma Energía, Flex, Convert, Orrick, Poyry and Swinerton Renewable Energy.