Home Americas SENER and CENACE announce preliminary results of the Third Long Term Auction
SENER and CENACE announce preliminary results of the Third Long Term Auction

SENER and CENACE announce preliminary results of the Third Long Term Auction

109
0

The average price of clean energy was 20.57 dollars, one of the lowest prices reached internationally.

  • The evaluation of the economic offers of the 2017 Long Term Electric Auction was carried out today, an evaluation that concluded successfully with the determination of preliminary results.
  • There was a high degree of participation and competence; 46 bidders submitted economic bids, of which 16 bids were preliminarily selected.
  • The average price of clean energy was 20.57 dollars, one of the lowest prices reached internationally.
  • An investment of 2,369 million dollars is estimated in 15 new power plants.
  • The results presented here are preliminary and are subject to a validation process by CENACE; the official winning offers and the ruling will be announced next November 22.

Joint press release 009 / 2017.- Today, at 8:00 p.m., the evaluation of the economic offers of the Third Long Term Electric Auction of 2017 was carried out, an evaluation that concluded successfully with the determination of preliminary results. The auction will allow generation companies to obtain contracts for the purchase of clean energy and Power (firm capacity), which will encourage investment in new sources of electricity generation in the country and produce more clean energy and internationally competitive prices.

Like the previous two auctions, the Basic Services Supplier (CFE Basic Supply) will buy three electric products: Energy, Power and Clean Energy Certificates to the generators that are winners. In addition, this Third Auction is distinguished since, for the first time, thanks to the establishment of the Clearinghouse by CENACE, it is open to buyers other than the Basic Supply who presented purchase offers in the three electrical products mentioned. In this third Long Term Auction, buyers were presented, in addition to the Federal Electricity Commission, Basic Supply, Iberdrola Clientes and Menkent (CEMEX). In practice,

During the execution of the economic evaluation program of the sale offers, which took place in the facilities of the National Center for Energy Control (CENACE) in Mexico City, with the assistance of the Secretary of Energy, Mr. Pedro Joaquín Coldwell as guest of honor. Present were, in addition to the officials of this organization, and as a social witness of the process, the Academy of Public Procurement of Mexico, AC Also, members of the Internal Control Body in the CENACE, Commissioners of the Energy Regulatory Commission, members of the Secretariat of the Public Function, representatives of sector associations, the Load Responsible Entities that will be buyers and the CFE Basic Services Provider and some of the participating Bidders.

The Mixed Integers Program was fed with the economic offers that the Bidders presented and sent on Monday, November 13 via electronic means.

Results

The preliminary results showed an economic surplus of 50.77%, which represents the savings achieved between the maximum prices in which CFE as the Basic Services Provider and the other Load Responsible Entities offered to buy, and the prices of the previously selected offers of sale. When savings of more than 27.3% were achieved, as established in terms of the Bidding Bases, successive rounds (iterations) were not required.

Product purchase objectives were achieved; together, the preliminary selected offers sum, per year:

  • 49 million MWh of energy,
  • 95 million CEL, and
  • 593 MW-year of Power,
  • This covers 90.2% of the energy purchase offer, 97.8% of the CEL purchase offer and 41.9% of the power purchase offer.

Regarding the sale of Energy and CEL, photovoltaic solar technology predominated, which corresponds to 55.35% of the Energy that will be sold and 58.31% of the CEL, in terms of wind energy, corresponds to 44.65% of the energy that will be sold and 41.69% of the CEL.

As for the Power (firm capacity) that will be sold as a result of the auction, turbogas technology predominated, with 84.36% of the Power sold. Solar photovoltaic and wind technologies also participated in the sale of Power, with 1.69% and 13.95% respectively.

The clean energy acquired in this auction is equivalent to approximately 1.78% of the annual electricity generation in Mexico. This result represents an important contribution to meet the goal of generating 35% of electricity in Mexico from clean sources by the year 2024.

Investment

The projects preliminarily selected in the auction have a generating capacity of 2,562 MW in total, which represent 15 new power plants anchored in this auction, for which, an estimated investment of 2,369 million dollars will be had in the next 3 years.

Prices

The preliminary results of the third auction show highly competitive prices compared to the previous auction. The average prices corresponding to the selected offers were:

  • Clean Energy (Energy + CEL): 20.57 dollars per MWh + CEL (38.54% lower than the previous auction).
  • Power: 36,253 dollars per MW-year.

The average price of clean energy (the combination of one MWh of Energy and one CEL) was 20.57 dollars , among the lowest prices reached internationally.

With these prices savings of 65.7% for clean energy and 34.33% for the Power were achieved with respect to the maximum prices of purchase offers, which were 60 dollars per MWh of clean energy and 55,200 dollars per MW-year of power .

Selected offers (preliminary results)

The preliminary results are broken down in the following table:

Start of the validation of results stage

These results are preliminary, because they are subject to a validation process in terms of the Bidding Terms, which will begin immediately. The validation will have the technical support of the National Polytechnic Institute and will be carried out in the presence of the social witness and the Internal Control Body in the CENACE. In particular, and in accordance with the Bidding Terms, it will be verified that sales offers that have not met the maximum and minimum prices have been discarded, that bids that did not meet minimum quantity requirements have been discarded, and that bids have been discarded. correctly applied the price adjustments foreseen in the Market Rules (expected differences by region, adjustments for indexation to dollars and break-off factors per hour of registration of offers).

Failure

The winning offers will be announced officially in the act of failure, which will be issued once the validation process is completed.

Next Wednesday, November 22 an event will be held to announce the details of the winning offers. The winning bids for this auction will be honored with power plants that must come into operation between July 2019 and June 2020, according to the offers themselves. Said plants will be an important advance to ensure the reliable operation of the National Electric System and to meet the goal of 35% participation in clean energy in 2024.

Source: gob.mx
Anand Gupta Editor - EQ Int'l Media Network

LEAVE YOUR COMMENT

Your email address will not be published. Required fields are marked *

Open chat