The first fruits of Mexico’s relaxation of decades of state monopoly in the electricity sector went to 100% renewable sources, as private developers won contracts to provide the Federal Electricity Commission (CFE) with 1,720 megawatts of power.
Mexico undertook major reforms of its energy sector in 2013, including opening its state oil monopoly to more competition (the first non-‘Pemex’ gas stations in half a century are set to appear in the nation’s capital later this year). The government has also “set a goal of getting 35% of its energy from clean sources by 2024, up from 25% now,” Bloomberg reports.
In the first-ever such auction in Mexico late last month, seven wind and solar companies won 15-year supply contracts for delivery beginning in 2018. The contracts are expected to generate more than $2.1 billion in investment by 2018, said Cesar Emiliano Hernandez, Mexico’s deputy electricity minister.
Eleven packages of wind and solar projects and associated clean-energy certificates were sold at prices averaging $40.50 per megawatt-hour for solar, $43.90 for wind. “Solar energy accounted for 1,100 megawatts sold, and 620 megawatts of wind projects were awarded long-term contracts,” Bloomberg reported. The certificates will be provided to bulk electricity purchasers to demonstrate compliance with renewable energy targets.
Mexico hopes to add 20 gigawatts of clean energy by 2030. Another auction will be held this month for the remaining roughly 15% of the CFE’s requirement.