Clifford Chance
Mexico's Second Auction: PPA Features and Bankability Considerations
10 October 2016
Mexico has announced the winners of its second auction round for long-term power purchase agreements (PPAs) for clean energy production. The announcement by the federal electricity agency, Centro Nacional de Control de Energía (CENACE), which was made on September 28, 2016, much earlier than expected, reveals that 23 out of 57 bidders won tenders for the sale and purchase of electricity, capacity and clean energy certificates (CELs), with an emphasis on solar, wind and combined cycle gas turbine (CCGT) projects. Tenders for 15-year sales of electricity and 20-year sales of clean energy certificates were primarily awarded to photovoltaic solar projects (comprising 54% of electricity and 53% of clean energy certificates) and wind power projects (comprising 43% of electricity and 41% of CELs),
whilst CCGT projects won the lion’s share of 15-year capacity tenders (72%).
