VIEW FROM THE TOP
FOSTERING COMPETITION AND INVESTMENTS TO CONSOLIDATE ENERGY MARKET PEDRO JOAQUÍN COLDWELL Minister of Energy
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Q: What major achievements have helped the Ministry of
A: Mexico can be a launching pad for profitable clean power
Energy strengthen Mexico’s electricity sector?
generation projects. Auction results attest that Mexico has
A: To date, we registered 32 companies participating as
joined the international trend of lowering generation costs.
power producers, qualified suppliers and traders and an
During the first auction in March 2016, the average package
additional 32 have already signed market entry contracts
price per MWh and CEL reached US$47.78 and attracted
with CENACE. A new milestone was set by the third long-
US$2.6 billion in investments while the second auction
term electricity auction as the lowest MWh plus CELs
attained a 30 percent lower average price, at US$33.47
package price yet was obtained at US$20.57. With the
and will contribute US$4 billion in investments. The latest
conclusion of the first three electricity auctions, US$9
auction surpassed expectations further as costs fell as low
billion in investments and 7,000MW of additional solar and
as US$20.57 for the MWh plus CELs package and reached
wind power generation capacity are expected, effectively
prospective investments to the order of US$2.4 billion.
quadrupling the county's renewable energy infrastructure by 2020 in comparison to the beginning of this
Q: What outstanding results has the coordination with
administration in 2012. The Ministry of Energy unveiled the
other government agencies yielded?
new contractual model for the construction of transmission
A: The Ministry of Energy maintains a constant and extensive
lines, in which private players can participate in financing,
inter-institutional coordination mechanism whereby
development and operation of such infrastructure through
different federal government agencies, including CENACE,
competitive and transparent bids. We also published the
CRE, INAH and SEMARNAT, participate. The purpose of the
first tender basis for the development of an interconnection
mechanism is to expeditiously address all matters under
project for Baja California with the rest of Mexico’s National
the attribution of each office and continuously generate
Interconnected System.
updated information pertinent to social and environmental requirements. The objective is to resolve them promptly and
In January 2017, we also disclosed the new technical and
within the regulatory framework, guaranteeing the rights
administrative guidelines enabling small-scale electricity
of communities and indigenous populations located in the
consumers to generate their own power and connect to
areas of influence of the new projects to be developed and
national distribution grids in a simpler manner. This boost
providing legal certainty to the inherent investments.
for distributed generation means users can install PV systems on their own residential and commercial roofs to
The Ministry of Energy’s Interinstitutional Linkages Office
cover part or all of their electric consumption needs and
created a follow-up methodology to monitor the results
reduce their electricity consumption costs.
of these efforts and streamline resolution times pertaining to project development. For instance, it developed an
May and November 2017 mark the first two Universal
Administrative Procedure Control Board to identify and
Electric Fund (FSUE) sessions, meant to be the social face
mitigate potential risk situations that delay or block the
of the Energy Reform and funded by contributions from the
advance of the projects in time and form. To date, we have
wholesale electricity market participants. Through CFE’s
registered an 80 percent advance in the resolution of such
extension of distribution grids and private companies’
administrative procedures.
contribution to installing off-grid PV systems, electricity will be within the reach of 1.8 million citizens who would
Q: What will the Ministry of Energy’s role be now that CRE
otherwise remain deprived of it.
has greater responsibilities starting in 2018? A: The Ministry of Energy will keep bolstering the
Q: What lessons has the Ministry of Energy learned from
consolidation of the emerging wholesale electricity
the auctions?
market. As the sector’s leading institution, we will continue
