Mexico’s Third Long-Term Electricity Auction: The Results and The Comparison
As the final results for the third long-term electricity auction were officially published on Nov. 22, it is now time to make an analysis of what they represent for Mexico, and a comparison with the past two auctions.
During the third long-term electricity auction, which took place on Nov. 15, 16 projects got assigned, totaling for 593MW of power, 5,942GWh of energy and 5,952 CELs.
This means that 42 percent of the offered power, 90 percent of the offered energy and 98 percent of the offered CELs were covered by the winners of the auction.
The awarded projects account for a total of 2.7GWs of capacity to be installed. Regarding the awarded technologies, PV accounts for 48 percent, wind represents 31 percent and turbogas has 20 percent of the total capacity. It is expected that all of these projects will bring a total investment of US$2.4 billion.
It is worth to highlight that this is the first electric auction where other players besides CFE were allowed to buy packages. Nevertheless, CFE remained as the main purchaser, offering to buy 91 percent of the offered power, energy and CELs. The remaining percentage was offered to Menkent and Iberdrola. The following table summarizes all the winning projects, together with the plant size, power, energy and CELs assigned.
This auction gathered attention worldwide after Enel made a record-breaking offer for a price of US$17.7 per MWh on a wind project. The fact that at first it was thought that the price was offered for a solar project made heads turn all over the world.
Comparing the three auctions, the third is without a doubt the one that dropped the prices. From the first to this last one, the average prices for the packages went down by 43 percent, going from US$47.7 to US$20.6 per MWh.
It is also worth noting that this was the electricity auction were the lowest percentage of offered power was covered.
In the following table, a summary of the top 5 states with assigned projects can be found.