• About
    • Which Energy Mix is this?
  • Climate News Network Archive
  • Contact
The climate news that makes a difference.
No Result
View All Result
The Energy Mix
  • Canada
  • UK & Europe
  • Fossil Fuels
  • Ending Emissions
  • Community Climate Finance
  • Clean Electricity Grid
  • Cities & Communities
SUBSCRIBE
DONATE
  • Canada
  • UK & Europe
  • Fossil Fuels
  • Ending Emissions
  • Community Climate Finance
  • Clean Electricity Grid
  • Cities & Communities
SUBSCRIBE
DONATE
No Result
View All Result
The Energy Mix
No Result
View All Result
  • Canada
  • UK & Europe
  • Fossil Fuels
  • Ending Emissions
  • Community Climate Finance
  • Clean Electricity Grid
  • Cities & Communities
  FEATURED
BP Predicts Faster Oil and Gas Decline as Clean Energy Spending Hits $1.1T in 2022 January 31, 2023
Canada Needs Oil and Gas Emissions Cap to Hit 2030 Goal: NZAB January 31, 2023
Ecuador’s Amazon Drilling Plan Shows Need for Fossil Non-Proliferation Treaty January 31, 2023
Rainforest Carbon Credits from World’s Biggest Provider are ‘Largely Worthless’, Investigation Finds January 31, 2023
Danske Bank Quits New Fossil Fuel Financing January 23, 2023
Next
Prev

Mexican Energy Auction Produces Prices Below 2¢/kWh for Solar, Wind

November 24, 2017
Reading time: 2 minutes

Kenuoene/pixabay

Kenuoene/pixabay

 

[This post has been corrected]

Mexico’s latest energy supply auction was initially believed to have produced a record-setting offer of 1.77¢ per kilowatt-hour from Italian developer Enel, with an average price across all the winning bids of just 2.057¢.

  • The climate news you need. Subscribe now to our engaging new weekly digest.
  • You’ll receive exclusive, never-before-seen-content, distilled and delivered to your inbox every weekend.
  • The Weekender: Succinct, solutions-focused, and designed with the discerning reader in mind.
New!
Subscribe

[A couple of days after news reports declared the record, Mexico’s National Energy Control Center (Centro Nacional de Control de Energía, CENACE in Spanish) and Enel clarified that the 1.77¢ bid had been for a wind project, while solar came in at a still-groundbreaking price of 1.97¢/kWh.]

“The record-low rate comes hot on the heels of an auction in Chile that saw Enel bidding $21.48 per megawatt-hour of solar power on one sub-block of capacity,” Greentech Media reported at the time. “Two years ago, the U.S. solar sector was cheering projects priced below 4¢/kWh.”

Enel’s winning price in Mexico is in the same ballpark as a bid of 1.79¢/kWh in a Saudi auction last month that drew skepticism from analysts. “You got your headline, Saudi Arabia,” Greentech snarked at the time, amid speculation that the price was improbable at best given market conditions in the country.

But this week’s news is a different story, and the price breakthrough isn’t limited to solar. “Wind power also hit an eye-poppingly low price point in Mexico, coming in at $22 per megawatt-hour for a 118-megawatt project proposed by Engie Wind,” Greentech notes. That result led MAKE Consulting partner Dan Shreve to suggest that “wind energy’s race to the bottom may have just ended in Mexico,” with an offer that includes some risky assumptions—that Engie will get a good price on new wind turbine technology, and that the devices will run for 25 to 30 years, compared to a more reasonable expectation of 20.

The auction results also point to a growing gap between the large renewable energy players that can afford to put forward astonishingly low bid prices and the smaller, often community-based providers that are left out. “It means only the biggest players stand a chance in these new auction systems,” Shreve wrote. “In order to take on both market and technical risks, the company must have substantial capital and credit.”

Across the procurement process, Greentech notes that solar and wind won two and 14% of the power capacity Mexico was auctioning off, respectively, with the rest going to natural gas.

“The clean energy acquired in this auction is equal to approximately 1.78% of the annual electricity generation in Mexico,” the government stated. “This result is an important addition toward meeting the aim of generating 35% of electrical energy in Mexico from clean sources by the year 2024.”



in Energy / Carbon Pricing & Economics

The latest climate news and analysis, direct to your inbox

Subscribe

Related Posts

Ken Teegardin www.SeniorLiving.Org/flickr
Clean Electricity Grid

Virtual Power Plants Hit an ‘Inflection Point’

January 31, 2023
125
EcoAnalytics
Media, Messaging, & Public Opinion

Albertans Want a Just Transition, Despite Premier’s Grumbling

January 23, 2023
324
Climate Denial & Greenwashing

Exxon Had the Right Global Warming Numbers Through Decades of Denial: Study

January 17, 2023
229

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

Trending Stories

Mike Mozart/Flickr

BP Predicts Faster Oil and Gas Decline as Clean Energy Spending Hits $1.1T in 2022

January 31, 2023
325
EcoAnalytics

Albertans Want a Just Transition, Despite Premier’s Grumbling

January 23, 2023
324
United Nations

Salvage of $20B ‘Floating Time Bomb’ Delayed by Rising Cost of Oil Tankers

January 27, 2023
122
/Pikrepo

Four Decades of Research Show Gas Stoves as ‘Overlooked’ Risk to Indoor Air, Child Health

December 7, 2020
1k
jasonwoodhead23/flickr

Canada, U.K., U.S. Must Cut Oil and Gas 76% by 2030 to Keep 1.5° Alive, New Analysis Finds

March 23, 2022
505
Nuclear Jordan/Facebook

TC Energy Wants to Supply ‘Small-Scale’ Nuclear Reactors to Alberta Tar Sands/Oil Sands

May 4, 2022
399

Recent Posts

Gina Dittmer/PublicDomainPictures

Canada Needs Oil and Gas Emissions Cap to Hit 2030 Goal: NZAB

January 31, 2023
196
CONFENIAE

Ecuador’s Amazon Drilling Plan Shows Need for Fossil Non-Proliferation Treaty

January 31, 2023
61
Ken Teegardin www.SeniorLiving.Org/flickr

Virtual Power Plants Hit an ‘Inflection Point’

January 31, 2023
125
/snappy goat

Rainforest Carbon Credits from World’s Biggest Provider are ‘Largely Worthless’, Investigation Finds

January 31, 2023
94
Victorgrigas/wikimedia commons

World Bank Climate Reforms Too ‘Timid and Slow,’ Critics Warn

January 31, 2023
42
Doc Searls/Twitter

Guilbeault Could Intervene on Ontario Greenbelt Development

January 31, 2023
132
Next Post
Christian Kuhna/Wikipedia

Siemens Lays Off 7,000, GE Restructures as Gas Turbine Business Lags

The Energy Mix - The climate news you need

Copyright 2023 © Energy Mix Productions Inc. All rights reserved.

  • About
  • Contact
  • Privacy Policy and Copyright
  • Cookie Policy

Proudly partnering with…

scf_withtagline
No Result
View All Result
  • Canada
  • UK & Europe
  • Fossil Fuels
  • Ending Emissions
  • Community Climate Finance
  • Clean Electricity Grid
  • Cities & Communities

Copyright 2022 © Smarter Shift Inc. and Energy Mix Productions Inc. All rights reserved.

Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behaviour or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}