Preliminary results show Enel bid two solar projects at just $17.70 per megawatt-hour. Wind power also hit a record-low price point in Mexico
Preliminary results from Mexico’s latest energy auction have broken the lower boundary for solar costs, following a trend seen in other auctions around the world.
The Mexican government this month announced the average price achieved in its third long-term auction of 2017 was $20.57 per megawatt-hour, which it said is “one of the lowest prices achieved internationally.”
A breakdown of the winning bids, published by Electrek, shows Italian developer Enel pitching two solar lots at $17.70 per megawatt-hour, or just 1.77 cents per kilowatt-hour -- the lowest bid achieved anywhere in the world so far. Two years ago, the U.S. solar sector was cheering projects priced below 4 cents per kilowatt-hour.
The record-low rate comes hot on the heels of an auction in Chile that saw Enel bidding $21.48 per megawatt-hour of solar power on one sub-block of capacity.
It was the lowest price for solar in the whole of Latin America, but not quite as cheap as bids achieved in the Middle East not long before.
In October, a tender for 300 megawatts of solar power in Saudi Arabia saw Abu Dhabi developer Masdar offering a price of $17.86 per megawatt-hour, the lowest cost on the planet up until Mexico’s results this month.
View all SMART GRID Bulletins click here