EnergyWatch

Mexico revokes system behind the world's cheapest wind farm

After first having suspended the country's fourth energy auction, Mexico's new government has now completely terminated the program. For the wind industry, this is perhaps not even the worst development to have taken place this last week.

Newly elected Mexican President Andrés Manuel López Obrador wants to remove multinational companies from the country's energy sector | Photo: Ritzau Scanpix/Alfredo Estrella

One year ago, shockwaves rippled throughout the global energy sector. With an average price of USD 20.57 per MWh – including one bid from Enel on a wind farm for only USD 17.7 per MWh – for roughly 2 GW in solar and wind capacity subscribed in Mexico's third energy auction, renewable energy prices reached yet another record-low level – even after having achieved low prices in the two preceding auctions.

Whether or not pushing prices even further down would have been possible is now a question that will remain unanswered. The fourth energy auction originally planned for November was initially postponed by the newly elected Mexican government and has now, surprisingly, been completely cancelled.

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