After a slow start, solar power is poised for a boom in sunny Mexico. On Tuesday the consultancy GTM Research revised its forecast for Mexico’s solar capacity growth this year from 267% to 521%. The upgrade was due to the country’s very successful clean energy auction last week in which 11 PV contracts were awarded, with a collective capacity of 1,860MW. (Separately on Tuesday the firm Canadian Solar also announced that it won a 63MW solar project in Mexico.)
The contractual prices for electricity were also fairly low compared to other countries around the world, meaning this boom will be even better for consumers once the panels become operational. The average price of the 11 auctioned contracts was $50.7 per MW/hr, with the larger projects anticipating economies of scale and thus accepting lower prices. $35.44 per MW/hr was the lowest rate awarded (to a 427MW project by Enel), while for comparison the lowest solar power purchasing agreement prices in Peru and India have been $47.98 and $71, respectively, according to GTM Research.