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Mexico to provide longer-term PPAs under country’s energy auctions

Popocatepetl, Mexico (source: flickr/ El mundo de Laura, creative commons)
Alexander Richter 10 Sep 2015

With the introduction on new regulation for the electricity market, Mexico is extending the term of Power Purchase Agreements (PPAs) to 15 years, with specific conditions for renewable energy projects.

Reported by PV Magazine, the final rules of the Mexican electricity market published earlier this week. in the Mexican official government journal. The new regulation establishes longer-term PPAs for projects and a specific supply category for clean energy projects awarded in future national energy auctions.

“Long-term PPAs will last 15 years and clean energy certificates obligations will have a duration of 20 years. Earlier this year the government proposed PPAs of only up to ten years in duration.

Renewable energy producers will be offered specific conditions for the supply of electricity under long-term PPAs. The rules establish a category for the supply of energy aimed for intermittent clean energy sources.

The auctions will be a part of an electricity market which is being introduced with the energy reform in Mexico and will start to operate at the beginning of next year.

Successful projects under the scheme are to commence operations about two years after the auction date. Specifically, standard starting operation date is on the first day of the third year after the auction has been launched.

Energy auctions for long-term supply will take place every year. Additional auctions under altered PPA and technology conditions could be introduced in the future as required.”

For the full details see link below.

Source: PV Magazine