Markets

4th Energy Auction Cancelled In Mexico

Anu Bhambhani
  • Having launched the 4th Long Term Energy Auction in March 2018, Mexico has finally scrapped it
  • It was in a limbo since December 3, 2018 when CENACE announced its suspension following the swearing in of the new federal government
  • CENACE said the cancellation is in compliance with the current regulations, legal framework and technical, economic, and energy planning considerations

Mexico has officially cancelled its 4th Long Term Energy Auction, announced in March 2018. The original plan was to conclude the tender on November 2, 2018 and sign contracts on February 15, 2019, but now it has been scrapped (see Mexico Issues Call For Fourth Energy Auction).

The National Center for Energy Control (CENACE) issued an official statement saying the cancelation is in accordance with the current regulations and in compliance with the current legal framework as well as technical, economic and energy planning considerations.

The tender SLP-1/2018 was initially suspended since December 3, 2018 as the agency along with the Federal Electricity Commission (CFE) and the Department of Energy (SENER) reviewed its targets and scope, following the swearing in of the new federal government on December 1, 2018.

CENACE has, however, allowed interested stakeholders to appeal for reconsideration of the decision under the dispute resolution process.

It is not known if the tender will be re-launched – and if yes, when.

In September 2018, CENACE said the country plans to add 12,429 MW of new energy generation capacity to the grid between August 1, 2018 to June 1, 2019, with renewables contributing 6.38 GW (see Mexico To Grid Connect 4.3 GW PV By June 1, 2019).