Mexico’s first renewables auction comes to an end

Between 2015 and 2018, the Mexican government expects to achieve 6 GW from renewable sources with an estimated investment of US$14bn. The Government-s commitment for 2024 is to generate 35% of the country’s electric consumption from renewable sources, with a forecast of 12 GW from wind power and 3 GW from PV. With these targets in mind, the first long-term auction for clean energy generation and sales took place on 29 March.

The auction involved a total of 227 offers from 69 bidders. Following evaluation of the economic terms by CENACE (the National Energy Control Centre), some 5,402 GWh/year were awarded, corresponding to 18 offers from 11 bidders to which the respective Electricity Contacts will be allocated. These contracts must be effective by 12 July this year. The energy bid is equivalent to 1.9% of Mexico’s annual generation with projects ranging from 18 MW to the 500 MW that will be installed in Yucatán, Coahuila, Guanajuato, Tamaulipas, Jalisco, Aguascalientes and Baja California Sur. The auction also allocated 5,380,911 CELs/yr.

The successful companies were Aldesa Energía Renovable, Consorcio Energía Limpia 2010, Enel Green Power, Energía Renovable Península, Emergía Renovable del Istmo II, Jinkosolar Investment, Photoemeris Sustentable, Recurrent Energy México, Sol de Insurgentes, SunPower Systems and Vega Solar.

The projects awarded, corresponding to wind and photovoltaic energy, represent an additional capacity of 2,753 MW, with PV accounting for the lion’s share with a total of 2,191 MW awarded. The most important solar projects include the project awarded to the company Vega Solar 1 for the Ticul 1 solar plant (Yucatán) with 1,000 MW of total capacity.

Successful bids for Spanish companies

A few days after what is possibly the most important auction to have taken place to date, the names of the companies that are backing the successful bids were announced.

Via Energía Renovable del Itsmo II, Acciona Energía was awarded the supply of 585.7 GWh under a project for a 168 MW wind farm in the State of Tamaulipas. The El Cortijo wind power project, whose production was awarded together with the corresponding Clean Energy Certificates (CEL), will be located 40 kilometres south of the city of Reynosa. Comprising fifty-six 3 MW Acciona Windpower turbines, the wind farm will generate electricity equivalent to the consumption of around Mexican 350,000 homes, avoiding the emission of more than 563,000 metric tons of CO2 into the atmosphere from conventional coal-fired power stations. Construction work is expected to start in 2017, with the wind farm coming on line by mid-2018. The energy produced will be supplied to the Federal Electricity Commission (CFE) under a long-term contract (15 years).

Alarde Sociedad de Energía, through the Consorcio Energía Limpia 2010 consortium, was awarded 5.4% of the energy supply. The company submitted a bid of 338 million pesos, as a result of which it was allocated 291,900 MWh with 291,900 CELs for a wind power project expected to be operational on 27 September 2018.

During the auction Aldesa Energías Renovables won 4.27% of the power supply corresponding to two projects: the Chacabal I and II wind farms with 230,000 MWh total capacity.

Alter Enersun, via Photoemeris Sustentable, was awarded a solar farm project in the Yucatán region with a capacity of 40 MW. A total project investment of €35.12m will be required to be ready to go prior to 1 January 2018. The management contract runs for 15 years with an estimated value of €52.7m for the whole period. Alter Enersun is currently very active as from the start of this year having finalised the purchase of the Globasol PV installations in Lobosillo (Murcia).