Mexico to launch clean certificates auction

Mexico will launch in the next days its first auction of clean energy certificates as part of the new wholesale power market, due to kick off in January 2016.

National utility Comision Federal de Electricidad (CFE), the sole possible buyer now, plans to purchase 4 million to 6 million certificates per year at this initial auction closing in March.

The government forecast on Wednesday that the new market, introduced with the energy reform, will lead to more investments, jobs and lower tariffs for the households and the industry. The auctions will include 15-year contracts for power and produced energy and 20-year contracts for the certificates.

CFE will participate in the auctions as a power producer and, on the other hand, as the basic electricity service provider, CEO Enrique Ochoa said, adding that as a buyer the company will select the best offers to reduce the cost of its services.

On Wednesday the government presented administrative provisions for a certificates registry and for clean energy obligations. Clean energy will have to represent 5% of the mix of each power generator.

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