EGP Dominates Mexico’s Power Auction With Solar

Posted by Joseph Bebon on March 30, 2016 No Comments
Categories : New & Noteworthy

Editor’s Note: The Mexican government has since revised the results of its auction. More information is available here.

In the country’s first long-term public electricity tender since its comprehensive energy reform, the Mexican government has awarded contracts for over 1.7 GW of renewable power.

Enel Green Power’s (EGP) Mexican subsidiary is, by far, the biggest winner and has been granted the right to provide a total capacity of around 1 GW from three solar PV projects. The developer says it will be investing approximately $1 billion in the construction of the new facilities, in line with the investments outlined in the company’s current strategic plan.

Villanueva and Villanueva 3 will be built in the state of Coahuila and will have a combined installed capacity of 754 MW, and the 238 MW Don José PV solar project will be constructed in the state of Guanajuato. The projects are expected to enter into operation in 2018.

“We are extremely pleased about the results of this tender,” says EGP’s CEO Francesco Venturini. “Mexico is a pivotal market for all serious players in this field due to its huge potential in clean energy and stable regulatory framework.”

According to a Bloomberg report, the Mexican government chose a total of seven renewable energy developers to enter 15-year contracts with state-owned utility Comisión Federal de Electricidad. The report says that, in addition to EGP, other developers included Recurrent Energy and SunPower Systems Mexico and that solar made up 1.1 GW of the deals while wind power accounted for 620 MW.

Bloomberg adds that Mexico has a 35% by 2024 clean energy target, and the government plans to hold a second power auction in April.

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