Mexico's top 5 states for solar growth

Mexico's solar capacity is set to surge in the coming years as projects awarded in last year's auctions, and in the one scheduled for November 22, come online, with the country's 'solar map' spreading to various new states.

Eleven solar projects were awarded in the country's first electric power auction in March 2016, and solar also dominated the second auction, held last September, in both the sale of electric power and clean energy certificates (CECs), at 54% and 53% of the total, respectively, followed by wind with 43% of power and 41% of CECs, and in which the average price of the offers was a record low US$33.47/MWh (power plus CECs) for solar.

The third auction in November is expected to triple Mexico's installed renewable energy generation capacity, and the country's solar capacity is expected to increase 20-fold by 2019 to 5.4GW, the energy ministry (Sener) said in late 2016. The first medium-term auction, scheduled for February, is also expected to be dominated by solar, according to the country's solar power association Asolmex.

Also read: Mexico could be world's 7th largest solar market by 2021

As a result of the two auctions held so far, it is possible to pinpoint the states that will become Mexico's solar hotspots.

Coahuila

The state government anticipated in June that up to US$1bn will be invested in renewable energy projects in the state over the coming years.

The arid northern state will see the construction of the US$750mn, 754MW Villanueva solar facility, which will be Latin America's largest, with 3mn solar panels, and the adjacent Villanueva 3 solar park. Developer Enel Green Power (EGP) began work on the former in March, which is the company's largest project in the world.

Two of Coahuila's major cities, Matamoros and Torreón, are already supplied with electricity from the 20MW Coahuila solar park, in which the government invested US$44.5mn.

Also read: Mexico's Coahuila to grow renewables capacity

Guanajuato

The central state will see the construction of the Guajiro 2 and the US$220mn, 238MW Don José solar parks, which were both awarded in the first power auction. Construction work on the latter, which is being conducted by EGP, began in April of this year. Slated for completion in 2018, the plant will generate 539GWh of electricity a year, equivalent to the demand of 410,000 Mexican households, and is anchored by a 15-year PPA with state utility CFE.

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Jalisco

The state with the fourth-largest energy consumption launched its own energy agency in 2016 to focus on renewable energy development, and the western state's innovation, science and technology department (Sicyt) said at the time that it had tallied 30 such projects that would bring US$1bn in investment up to 2025.

Chinese firm JinkoSolar was awarded two projects in the first power auction, one of which is to build the 100MW Viborillas solar park.

Local firm Fortius Electromecánica opened the 8MW Jalisco I merchant solar plant (pictured, below) in April and, in May, Fortius and Power Iluminare formed a JV to supply public lighting to the Guadalajara municipality of Zapopan from the solar plant (pictured) on an 18-year contract.

Also read: Mexico brimming with solar growth potential

Sonora

The sun-baked northern state will see its solar generation capacity boosted by the 105MW Hermosillo solar park, to be built by Iberdrola, while fellow Spanish company Acciona is currently building the 339MW Puerto Libertad facility.

Another solar projects slated to be built in Sonora is the 125MW Orejana plant, currently under development by Kemet Energía.

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Yucatán

Three solar parks are set to be built in the southeastern state: the Concunul, San Ignacio and Kambul PV facilities, as a result of the first power auction. The first of the three, a 70MW facility, will be built by JinkoSolar and Solarcentury, and is slated to open in 2018, while the 30MW Kambul plant will be built by Photoemeris Sustentable and is still in the design stage.

More solar plants are also planned for the state, CFE's deputy director for the Yucatán peninsula, Matías Bermúdez, said in July last year.

Also read SPOTLIGHT: Mexico's renewables sector enters major growth phase