Mexico’s clean energy tenders to trigger US$ 8.6 billion investments by 2021

Mexico’s clean energy tenders to trigger US$ 8.6 billion investments by 2021

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The three electric auctions that the Mexican government carries out to award contracts to private companies that build power plants using clean technologies, will result in around US$ 8.6 billion investments by 2021, Secretary of Energy, Pedro Joaquin Coldwell, said in recent days at a press conference.

The companies that have participated in these competitions will build in this timeframe 65 power plants, 40 photovoltaic facilities and 25 wind farms, with prices per megawatt (MW) that are among the lowest in the world.

"We are getting some of the most competitive generation costs in the world, because we generate a scheme where we put all technologies in a transparent competition, and the one that offers the lowest price wins," said Coldwell.

The third of the long-term auctions, left average wind power generation prices of US$ 19 per MW, the lowest compared to other countries where these types of electricity tenders have been made.

In terms of solar power prices of US$ 21.83 were given, just above the US$ 17.9 obtained in Saudi Arabia, according to data provided at the conference.

Now, the Government is preparing two tenders for the construction of two transmission lines: one that will connect Baja California with Sonora, led by the Secretariat of Energy; and another to connect Oaxaca with the center of the country, and led by Mexico’s state-owned utility company Comision Federal de Electricidad (CFE).

The first tender, which will be launched in September, will have an estimated investment of US$ 1.1 billion; and the second, to be held in July, will require approximately US$ 1.7 billion.

Coldwell added that during last year, 53,000 permits were granted to allow households or small businesses to generate and consume their own energy through technologies such as solar panels on roofs, almost double compared to the 29,000 permits delivered in 2016.


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