Since the previous edition of Solar Asset Management Mexico & Central America, the Mexican solar market has experienced a few sobering moments, especially with the cancellation news of the 4th energy auction spreading like wildfire across the internet. There are many questions to be answered about the future stability and scalability of this budding market.
The postponement of the December auction by the new government, delays caused by environmental permitting and community consultations, and low prices at previous auctions having dampened banks’ appetite for financing are among the market challenges.
Understanding portfolio and plant data is a crucial pillar of creating an effective O&M strategy. Mere monitoring of a plant’s uptime is not adequate to address potential issues, which may arise.
Solar is set to surge in Mexico, but not without its risks. From the record-low prices at auction and delays caused by permitting and land disputes to financing and organised crime; industry insiders agree the market has its particular challenges.
Mexico and Central American countries have turned their gaze to renewables, solar in particular, to meet the energy demands of the region’s growing population, moving towards a clean energy future. The high retail electricity prices in Central America, coupled with region’s inherent natural solar potential, have resulted in an impending boom in the solar industry. This is further aided by the improvements on the policy-front, with net metering regulation, the Clean Energy Corridor and Mexico’s energy reform creating a more renewables-friendly policy environment.