Mexico’s third clean power auction draws US$ 2.4 billion investments for 15 projects
As result of the third Long Term Electric Auction, the Mexican government expects US$ 2.4 billion investments to build 15 new clean-energy plants in eight states, which will add 2,562 megawatts (MW) to the national power grid.
The projects consist of nine solar plants (photovoltaic) which account for 1,323 MW, five wind farms with a combined capacity of 689 MW and one gas facility (550 MW), explained the head of the Secretary of Energy (Sener), Pedro Joaquin Coldwell during a conference.
Also as a result of the third auction, the lowest price worldwide was achieved of US$ 20.57 per megawatt hour (MWh).
After completion of the three tenders, 7,451 MW of new clean generation capacity will be added, with close to US$ 9 billion investments, which will allow the country to approach the goal of 35% of power capacity coming from clean energy sources by 2024.
At the beginning of the current presidential term only 4% of the total power output in the country accounted for solar or wind sources, with the new projects, it will reach 11%.
Among the confirmed winners of the third tender is Italy-based utility company Enel SpA, which said it has been awarded the right to sign a number of contracts in Mexico to supply energy and clean-energy certificates on four wind projects for a total capacity of 593 MW, the biggest share of the auction. Enel said it will invest around US$ 700 million in those projects.
The largest project is the 244 MW Dolores wind farm, which will be built in the municipality of China, Nuevo Leon. The other three are the Amistad II, III and IV projects, which will be located in Acuña in the northern state of Coahuila. Amistad II and III will have capacity of 100 MW each, while Amistad IV will be 149 MW, Enel said. All four plants are slated to come online in the first half of 2020.
France-based independent power producer Engie announced it has bagged rights to develop four renewable projects with a combined capacity of 687.8 MW. Engie will develop the projects with an investment of US$ 580 million.
Engie will be developing a wind project named as Tres Mesas 4 which will have a capacity of 100.8 MW. It will come up in the state of Tamaulipas. The three other projects it had won during the auction are all solar plants. In the Chihuahua state, it will develop a 199 MW solar project named as Villa Ahumada.
The French firm will also develop a 134 MW solar plant in Sonora state which is named as Abril. The fourth project is the biggest of all, a 254 MW solar project named as Calpulalpan which will be developed in the state of Tlaxcala, central Mexico.
“By 2020, ENGIE Mexico will have invested close to 800 million dollars in renewable power generation, with approximately 900 MW of capacity. Our ambition is strong, it is in line with the draw of ENGIE to be a leader of energy revolution,” said Engie CEO Isabelle Kocher in a statement.