Mexico: embracing the market through renewables

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In previous posts and articles I have argued that the success of Mexico's electricity reform lies in restraining CFE's incumbent market position resulting from its former status as electricity monopoly. The electricity reform officially opened up with two auctions for renewable energy, in March and September of 2016. In both cases prices were very competitive, but as the sole off-taker, CFE was the only beneficiary. The third auction under way has opened up new possibilities for Qualified Service Suppliers and Qualified Users to participate directly in the market. This should enable at least some consumers to benefit from lower prices from cleaner technology and encourage ...