On September 19, 2019, the Energy Ministry (“SENER” for its acronym in Spanish) announced its intention to reactivate the electric auctions that in previous years had been called by the National Center of Energy Control (“CENACE” for its acronym in Spanish) which as of this date resulted in approximately 56 projects currently being developed throughout Mexico.
As announced by SENER, the fourth electric auction would be structured as to attend regional energy demands, specifically, in first instance, for the Mexican State of Aguascalientes for 200 MW.
Based on the above, future electric auctions will be called by CENACE prior determination made by the government of the regions in which there is a need to increase the capacity and where energy projects to meet those demands should be developed.
SENER has also announced that more electric auctions and electric generation projects will be developed once the State-Owned Productive Company known as Federal Electric Commission (“CFE”) increases the transmission network and infrastructure, as well as the National Interconnection System.
SENER has also announced that it will honor the agreements already awarded in the electric auctions, as well as the electric generation permits issued by the Energy Regulatory Commission (“CRE” for its acronym in Spanish).
Electric auctions called in the previous administration proved to be successful and had import participation by major energy companies. First, second and third electric auctions called by CENACE resulted in relevant agreements that, among other benefits, helped CFE securing its needs regarding, energy, power and clean energy certificates.
The lawyers of the energy, mining and infrastructure area of our firm are available for any questions or comments on the above.
Juan Carlos Serra
Jorge Eduardo Escobedo Montaño
Jorge Cobos Franco
Mexico City, September 20, 2019