Mexico prepares for maiden electric power auction

Mexico is due in October to call for bids ahead of the country's first electric power generation auction, expected to take place in March 2016, according to the energy ministry (Sener).

The auction will be the first as Mexico works to develop a wholesale power market – an objective of the country's energy reform. The definitive wholesale power market regulations will be published at the end of August, energy minister Pedro Joaquín Coldwell (pictured) said at an energy forum in Mexico City.

The reform aims to lower electricity costs to consumers and promote the use of renewable resources, he said.

By 2018, Coldwell added, the country is expected to have a modern electric power sector, with a diverse energy matrix and increased access to natural gas that will ramp up the competitiveness of Mexican industry.

Mexico's electric power system development program (Prodesen), launched in July, includes projects to develop new transmission lines, he said. The program is aimed at modernizing and expanding the grid to meet growing demand, raise the quality of services, lower prices and reduce greenhouse gas emissions.