In total contracts for 1.8 GW of PV projects awarded in Mexico’s second Clean Energy Auction have been signed, according to Mexican solar association Asolmex. The median price for solar is around US$31.70 per megawatt-hour (MWh) in the auction, the lowest median price to date in the world.
The prices for individual contracts also hit a record low level for solar to date. Among the 16 PV projects awarded in this auction is a 300 MW project which FRV says reached a price of $26.99 per megawatt-hour. Before the signing of the contracts in this auction in Mexico, the lowest price for a solar power contract was above $29 per megawatt-hour.
However, in the next few months it will be possible to register a lower price for a solar power contract, as last September a bid was placed for a 350 MW solar project in Abu Dhabi at $24.20. According to local press, the signing of the contract is expected in March of this year.
Asolmex highlights that the 1.82 GW of new solar capacity for which contracts have been signed in Mexico represent investments of more than $2.3 billion. The Second Clean Energy Auction was held las September, and according to the timetable of the auction, the deadline for signing the contracts ended on January 31.
“With the signing of these contracts, the 16 solar projects awarded represent new guarantees to secure the fulfillment of commitments made during the energy auctions,” stated Asolmex President Héctor Olea.
Along with this, during the last year contracts were awarded in two clean energy auctions for a combined capacity of 3.6 GW of PV projects. In the first auction, which was resolved in April, the median price for solar is around $44.90/MWh.
The PV projects awarded in those two auctions are expected to go online in 2018 and 2019.
Translated by/traducido por Christian Roselund. Para leer el original en español, por favor visite el sitio web pv magazine Latinoamérica.
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This race to the bottom is not healthy for the industry. I understand PV needs to be cheaper than the other energy sources, but sending PV projects to below the profit margin during self-competition is madness.
Who wants to make a stand, this is the industry price?