Driven by three successful clean energy auctions, large-scale photovoltaic projects in Mexico have experienced explosive growth. New photovoltaic installations are expected to exceed 3GW in 2020. However, due to the cancellation of auctions and the intensification of subsequent policy uncertainties, we expect that Mexican solar power system cost installations will increase Gradually decline in 2021.
In December 2018, Lopez officially became the new President of Mexico. Under his leadership, Mexico's energy policy has gradually shifted to improving the profitability and development of state-owned enterprises, at the expense of private enterprise interests. The fourth clean energy auction, originally scheduled to be held in November 2018, was postponed twice, and finally cancelled in January 2019.
In October 2019, the government sought to change the rules for granting clean energy certificates (CELs), a move designed to benefit Mexico's state-owned power company (CFE) 's large number of hydro and nuclear power plants. The federal court in Mexico City has announced a moratorium on the draft due to numerous complaints, but uncertainty remains.
Mexico's new photovoltaic installed capacity in 2019 is about 2.4GW, of which the installed capacity of ground power stations is 2.1GW. The three national clean energy auctions held between 2016 and 2017 have become the main driving force for photovoltaic installations in the country in recent years. The cancelled fourth clean energy auction was originally expected to tender for 5.9TWh of clean energy, which is equivalent to the size of the first three clean energy auctions. Sum.
Because more than 2.6GW of photovoltaic projects are already under construction or financing, we believe that Mexico's photovoltaic installations will exceed 3GW in 2020. However, due to changes in policy orientation and current grid restrictions, new photovoltaic installations in Mexico are likely to plummet in 2021.
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