Mexico launches 4th long-term power auction

Mexico's government has kicked off a fourth long-term power auction, the first that energy regulator CRE will manage after the energy ministry handled the previous processes in 2015, 2016 and 2017.

The watchdog and national energy control authority Cenace will publish bidding rules for the 15-20 year contracts on March 28. Prequalification requests are due in August and offers in October with awarding scheduled for November and signing in February 2019.

Commercial operations under the contracts are due to start January 1, 2021

Sixteen projects were awarded in the country's third long-term power auction, which produced record low prices of US$20.57/MWh, or 30% below those in the second auction.

Read At a Glance: The projects awarded in Mexico's 3rd power auction

Authorities highlight that as a result of the three previous long-term auctions, 19 states will benefit with the development of 70 new plants, 67 of which are clean energy. The projects were awarded to 42 companies from a range of countries that will invest US$9bn.

Meanwhile, Cenace published the results of Mexico's first medium-term power auction, available here

PROJECT FINANCING

In a related note, the European Investment Bank (EIB) reported that its board approved financing for three Mexican solar photovoltaic projects.

EIB did not immediately respond to a request for information on the projects, but the lender's pipeline of projects under appraisal includes Mexican solar parks Don José, Villanueva Solar and Villanueva Tres.

The three Enel Green Power projects total 991MW and US$1.03bn in investment. The bank's proposed financing is US$150mn.