Lowest solar power price worldwide in Mexico energy auction

The Secretariat of Energy and CENACE have announced the preliminary results of Mexico’s Third Long Term Auction, in which the average price of clean energy was 20.57 dollars, one of the lowest prices reached internationally. The power auction pre-selected 16 bids with an average price of $20.57/MWh and 2.56 GW of combined capacity. According to the auction’s preliminary results, solar may account for 55% of contracted power with 3.0 TWh.

The auction will allow generation companies to obtain contracts for the purchase of clean energy and Power (firm capacity), which will encourage investment in new sources of electricity generation in the country and produce more clean energy at internationally competitive prices. On 22 November the final results will be made public. The winning bids for this auction must start delivering power to the grid between July 2019 and June 2020, which will be an important addition toward meeting the aim of generating 35 percent of electrical energy in Mexico from clean sources by the year 2024.