Mexico’s CENACE announces 3rd long term auction award

Mexico’s power market operator CENACE announced that 5.5TWh of energy, 5.95m clean energy certificates (CELs) and 593MW of capacity (potencia) have been preliminarily awarded in the country’s third long-term auction, which closed on 16 November.

Sixteen separate projects, developed by 12 different companies, secured contracts through the auction.

Italian utility ENEL was the biggest winner in the round, securing contracts to supply 1.75TWh and 1.7m CELs from four separate projects, nearly a third of the energy sales quantity and CELs awarded through the auction.

Average prices for the projects awarded were $20.57/MWh and CELs, 39% lower than the previous auction.

Potencia projects were awarded at $36,253/MW per year.

Four projects were awarded potencia contracts, the biggest single award of 500MW going to a Turbogas plant proposed by Compania De Electricidad Los Ramones.

The remaining 93MW of capacity contracts were awarded through three different projects proposed by X-ELIO Energy Energia Renovable Del Istmo II and Consorcio Engie Eolica.

Photovoltaic solar energy projects were the most awarded through the auction, securing 58.3% of the CELs and 55.4% of the Energy contracts.

Wind projects secured just under 42% of the CELs, 45% of the energy and 14% of the potencia contracts awarded through the round.

Confirmation of the final results is expected on 22 November.

All projects awarded contracts through the round should come online between July 2019 and June 2020. james.fowler@icis.com