Mexico announced the results of its inaugural long-term power auction the last week of March. Solar PV developers shocked the wind power industry by dominating the post-market reform auction, signing PPAs for three-quarters of the total power awarded. Enel set a record for PV pricing in Latin America with a PPA signed at 35.60 USD/MWh. In total, PV developers signed PPAs for more than 1.6GW of capacity. Although wind power pricing was bid as low as 43 USD/MWh, developers signed contracts for just 394MW. The unexpected result has left the wind power industry searching for answers about the future of the renewables market in Mexico. Link to publication here.
UK Offshore Wind Certainty Despite Brexit Worries
The offshore wind industry in the UK has suffered over the last few years from a lack of transparency and long-term clarity needed to sustain investor confidence. The government has provided very little information about long term expectations. A sign of more clarity has recently emerged with the UK 2016 budget, which includes clarity on the level of support that offshore wind can be expected to receive in the next decade. Despite CfD budget clarity, investment and local supply chain uncertainties exist due to a possible UK exit from the EU. The UK has a lot of work cut out for it in ensuring a smooth transition to a greener economy with sufficient power supply. On 23 June, the UK will vote on whether or not stay in the European Union. Link to publication here