Mexico introduced a new liberalised competitive electricity market in 2016 and has seen one of the biggest expansions in the region with a strong interest from developers and investors alike.
The new market design presents various opportunities and challenges for all stakeholders. Mexico now has four main markets which developers can participate:
- Wholesale electricity market
- Ancillary services market
- Clean Energy Certificate (CEL) market
- Capacity market
The market design chosen in Mexico creates great opportunities for projects, developers can benefit from different revenue streams and risk mitigation strategies, However the market design is very complex, incorporating aspects from other North American, South American, European and Asian markets which can be a challenge towards building safe and sound strategies for new entrants.
Pöyry's in-depth experience in electricity markets worldwide and with over 6 years’ experience in the Mexican market enables our clients to gain a unique perspective into the energy transition and the challenges and opportunities in Mexico. We use our in-house developed hourly market model “BID3” to analyse the electricity market and build long-term price projections until 2045 for market analysist, asset valuations, and project finance.
- Market leading in-house BID3 software utilized across the region to provide analysis of long-term power market trends, capacity market price analysis. Uniquely detailed weather driven approach merges features of high-RES penetration resource adequacy studies, with commercially focused analysis.
- We have acted as lenders market advisors or as independent advisors for investors in over 9GW of wind and solar assets in Mexico and over 6GW of conventional thermal assets since the market started.
- We provide strategic advisory services and market entry strategies for OEMs, energy service providers and electricity traders.
- Pöyry's Independent Market Report for Mexico, an off-the-shelf report can help experienced and new entrants understand the Mexican market and gain an insight into the expected evolution of the market.
- We have advised and supported clients in developing their bidding strategies in the long-term auctions in Mexico.
Pöyry Management Consulting,
King Charles House,
Park End St,
Oxford OX1 1JD,
Did you know?
- Pöyry have been providing consulting services in North America for > 20 years and currently serve our clients through 150 staff across our New York Management Consulting office and engineering centres in Appleton, Wisconsin and Montreal, Canada.
- Pöyry has worked with almost all banks currently financing electricity generation projects in Mexico, having performed detailed due-diligences for over 3.7GW for projects with PPAs and even merchant projects.