Mexico may raise as much as $4 billion for clean energy projects this summer as the government seeks to continue a tender process that produced its first results last week.
The next auction due in August will be 50 percent bigger than the one that just concluded with expectations for $2.6 billion of investment in the renewables, said Cesar Hernandez, deputy secretary of electricity for the nation. The August tender is designed to encourage hydroelectric and combined-cycle gas projects to bid in addition to renewables developments. Companies will be invited to participate in April.
The auction finished on March 29 followed from the government’s decision to end its decades-long monopoly over the electricity business. Acciona SA, Enel Green Power SpA, SunPower Corp. 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.
“For the next auction, we will follow the same model as we had in the first one, which was a very competitive process,” Hernandez, said in an interview to Bloomberg.