• Mexico had to redo power auction because of flawed proposal
  • Eleven companies won rights to generate power in Mexico

Renewable energy developers including Acciona SA and an Enel SpA unit are set to spend $2.6 billion on power plants in Mexico after winning bids in the country’s first-ever electricity auction.

Acciona, Enel Green Power, SunPower Systems and Recurrent Energy were among the 11 companies that won rights to generate and sell 2,085 megawatts of clean power to the state-owned Comision Federal de Electricidad, Mexico said Wednesday.

While the sale was the first since Mexico decided in 2013 to allow private companies to compete for power contracts, it was actually the second time the country ran the auction. The government was forced to hold the sale again after an initial one was botched by a flawed bid from Gestamp Wind. The previous auction had resulted in fewer megawatts contracted and less investments committed, according to results the government has since thrown out.

“For the first time in Mexico, an electricity market has been established where the generation and commercialization of energy are open to free competition,” CFE Chief Executive Officer Enrique Ochoa said Wednesday in Mexico City. The projects will “diversify our portfolio” and help the country meet its goal of sourcing 35 percent of its power from clean energy resources by 2024, he said.

18 Projects

A total of 18 projects were ultimately awarded, with solar ones making up 1,691 of the megawatts contracted. The remaining 394 megawatts will come from wind resources, according to Energy Minister Pedro Joaquin Coldwell.

Enel Green Power was awarded the biggest share of the projects. The company won contracts for power and clean energy certificates for three solar projects, totaling almost 1 gigawatt in installed capacity, it said in a statement Wednesday. Enel will invest $1 billion to build them.

Acciona won a contract to build a 168-megawatt wind farm in the state of Tamaulipas. The so-called El Cortijo project is scheduled to begin operations in 2018, the company said by e-mail.

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