This Flash Note from Make Consulting examines the results of Mexico’s third long-term power auction held in November 2017. The note evaluates the event and its bidding within the context of previous auction rounds in Mexico as well as within the Latin American region. It analyses the dynamics that contributed to Enel’s record low bidding and posits dynamics that favor low bidding in the Mexican market.
• Mexico hosted a long-term power auction in November 2017 which awarded offtake agreements to wind power and PV projects totaling 5.5 TWh of annual production
• Enel submitted four successful bids for wind power sites with the lowest reaching $17.70/MWh
• In total, the auction awarded PPAs to 2 GW of new project sites, including 689 MW of new wind power sites which are due online in 2020