Mexico just recently held its first ever auction for wind and solar energy projects. The auction follows changes that took place within the government in 2013, putting an end to the country’s electricity monopoly.
This auction saw a number of private bidders competing for projects in which the Mexican government and the private enterprises would both invest. The market, which was previously not competitive, is now seeing a lot of international interest. The magnitude of the recent auction far exceeded expectations.
Italian company Enel Green Power (EGP) walked away from the auction with a 1 GW, $1 billion contract from the Mexican government. Following their award, EGP’s CEO stated, “Mexico is a pivotal market for all serious players in this field due to its huge potential in clean energy and stable regulatory framework… We have worked hard to become one of the most competitive companies in many clean technologies and the positive outcome of this tender is another clear indication of the success of our growth strategy.”
This type of auction is set to take place annually, in April, from now on. The opening up of Mexico’s power market is a great step toward global clean energy. Mexico aims to get 35% of its power from clean energy sources by 2024, and the country is already projected to spend upwards 0f $60 billion on clean energy by 2018.