When Mexico’s authorities set out on the ambitious plan of generating 50 percent of its electric power capacity from renewable energy by 2050, it had to engineer the proper mechanism to channel the resources and projects proposed by the private sphere to achieve those goals. In come the long term electric auctions to, as Zumma rg+c reminds us, stabilize energy prices and encourage competitiveness.
Auctioning the way to renewables
Mexico’s first long-term electric auction took place in 2015. Solar and Wind power were at the forefront of this process, being awarded 74.38 percent and 25.62 percent of the auctioned energy, respectively. According to SENER, 5.38M of CELs were also allocated, representing 84.39percent of the total offer. In 2016, the second auction included geothermal, combined cycle and hydroelectric projects. As a result, both auctions represented a total investment of US$ 6.6 billion and 5,000MW of clean energy once all winning projects are operational.
MIREC Week: the go-to place to reap the fruits of the electric auctions
Concluding alliances, covering the whole value chain, sitting at the table with potential winners, finding reliable contractors, manufacturers, financing. These are a few of the whole spectrum of tasks required to build an auction-winning project. You’ll find all these key players at MIREC, the place to be for a front row seat in the unfolding of the upcoming third edition of the long term electric auctions. Where will you be on May 8th?