First private Mexican power capacity auction a relief for renewables, uncertainty remains

摘要

The results of the first privately organized energy auction in Mexico are expected at the end of February and should be a positive step for the local market, sources told S&P Global Platts. However, uncertainty remains among participants, especially those who produce renewable energy, as the government continues to signal it intends to squeeze them out, the sources said. The private energy auction, launched in June 2019 by Mexico-based asset administrator Bravos Energia, was the first since the government canceled its own auctions in early 2019 as it sought to revive CFE, the indebted state electric utility. Bravos' auctions "are a natural evolution of the market. To the extent that they result in bankable contracts, they provide an alternative solution to secure future revenues and allow developers to finance their projects," said Alan Sakar, a lawyer at Clifford Chance in Washington.