Puebla State, Mexico
130 MWAC / 140 MWDC
JCM Power is developing a 130 MW AC (140 MW DC), ground‐mounted solar PV project in the Puebla State, Mexico. The project SPV has secured control of 319 hectares situated 36km southeast of the city of Puebla, and approximately 3.4km from the substation, connecting at 115kV.
Mexico is currently the second largest power market in Latin America with approximately US$110 billion of investment in the generation, transmission and distribution sectors forecast until 2030. In 2014, the government started a reform process to change the market from a vertically integrated utility-controlled sector to a liberalized generation market. Under the new system, energy producers can only obtain medium to long-term PPAs through the power auctions or by entering into bilateral agreements with qualified service suppliers or qualified user market participants.
The Mexican energy landscape includes some of the world’s largest energy players, which makes for a very competitive market, especially if competing against them in the power auctions. To date, Mexico has conducted three long-term power auctions, which have seen a downward trend in the average tariffs. The first resulted in an average price of $41.8/MWh, the second in an average price of $33.47/MWh, and the third power auction in 2017 resulted in a record low average price of $20.57/MWh.