This is the first blog in our Global Spotlight Series, which provides high-level overviews of emerging renewable energy opportunities in various markets across the globe. Today we will explore opportunities in Mexico. Stay tuned for next month’s spotlight on India.
Now is the time to start considering renewable energy opportunities in Mexico in order to secure competitively-priced renewable electricity and create a valuable hedge for your energy spend. Read on to explore what these opportunities are, and how your company can take advantage of them:
Power Purchase Agreement (PPA) Opportunity Overview
As Mexico’s electricity market continues to deregulate, the new market remains yet to be fully defined. A compelling opportunity for bilateral PPAs is still available for renewable energy projects that qualify under a Mexico self-supply regime – a beneficial regulatory structure originally available to project developers through December 31, 2016. Mexico’s Federal Regulatory Improvement Commission (COFEMER) recently announced that extensions for certain clean energy projects have been approved. Thus, there is an expanded window for the Mexico self-supply opportunity for C&I customer, and now is the time to start exploring PPA opportunities in Mexico.
Energy Attribute Certificate (EAC) Opportunity Overview
The development of the CEL market predominately created opportunity for tracking and trading clean energy. In the new deregulated market, CELs will be mandated. They are predicted to be priced at $10-$20 USD, and corporates with Mexican operations will be required to purchase them for a minimum of 5% of their electricity consumption starting in 2018.
Mexico offers the most immediate international PPA opportunity.
Global organizations including General Motors, Home Depot, Volkswagen, and Wal-Mart have all completed deals in Mexico.
The newly deregulated market comes with uncertainty. Corporates considering a PPA in Mexico are encouraged to act now, as the self-supply regime has a limited window of opportunity.
Get in touch with our team of global experts to learn how your organization can take advantage of the current opportunities in Mexico.
The post Global Spotlight: Clean Tech Opportunities in Mexico appeared first on Renewable Choice Energy.