Mexico will launch its third energy auction in April in a bid to cheaply procure clean sources of power generation.
At a ceremony to sign contracts awarded in its last energy auction, which saw prices for renewables projects fall by 30 percent, the head of Mexico’s National Energy Control Centre, Eduardo Meraz Ateca, said the Latin American country’s third auction process will begin on 28 April. He said contracts in this auction will be awarded in mid-October.
Since enacting energy reforms in 2013, Mexico has sought to build out its renewables sector through energy auctions that award gigawatts of power contracts at a time and are driven down in cost from competition.
Mexican Energy Minister Pedro Joaquín Coldwell said at the signing ceremony that Mexico plans to add 5GW of installed solar and wind capacity by 2019 and is targeting 35 percent of generation from clean sources by 2024.
Contracts for over 2GW of projects, including 1.7GW for solar, were awarded in March at an average rate of $41.80MWh. In September, prices fell by a third as 23 developers were awarded 3GW of contracts that averaged $33.47MWh.
Companies including Acciona Energy, Iberdrola, Enel Green Power, Engie and Actis-backed Zuma Energia won contracts for 36 projects representing $4 billion of investments in Mexico’s second energy auction.