Money
Analysis
With Mexico’s days of absolute legal certainty boosting utility-scale investments in the past, investors see different opportunities arise.
MEF 2021 Day 1 1100 Financing Trends
Video
Mexico Energy Forum 2021 continues with a panel that addresses the future of financial participation in Mexico’s energy opportunities.
MEF 2021
News Article
Mexico Energy Forum 2021 continues with a panel that addresses the future of financial participation in Mexico’s energy opportunities.
Alan Sakar, Clifford Chance
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Alan Sakar
Senior Associate / Future Energy Leader
Clifford Chance / World Energy Forum
Alan Sakar outlines the latest trends in the energy sector regarding project development and financing.
MEF 2019
News Article
Mexico Energy Forum 2019: New Financing Models, the Ideal Path Toward Energy Stabilization in Mexico panel highlights
Alan Sakar
Roundtable
Alan Sakar
Alan Sakar
Associate in Project Development and Finance
Clifford Chance

In the first and second auctions, CFE was the sole purchaser and virtually absorbed a measurable off-taker’s risk. Starting with the third auction, the Clearing House will represent a pool of purchasers per auction. Clifford Chance applauds the authorities’ design efforts when structuring the electricity auctions. We understand that some banks were involved in the structuring of the Clearing House, which is a strong sign that the government took into consideration certain bankability issues, which the banks would likely raise during the financing of the projects. We have no doubt this model will be replicated in other countries in the coming years. The success of the upcoming auctions will be largely based on the independent performance of CENACE, which will manage the risk of buyers’ nonpayment, the guarantees and the reserve funds.

Unlocking a country’s entire electricity sector to private initiative is not something done overnight.
jose guardo
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José Guardo
Partner
Clifford Chance Project Development and Finance
"With respect to auction projects, we expect to see soft and hard mini perms, which are a trend now in the region"
Alan Sakar
Roundtable
Alan Sakar
Alan Sakar
Associate
Clifford Chance Project Development and Finance

Mexico has made tremendous efforts in the design and implementation of the wholesale market, but the real success of Mexico’s reform will depend on the proper execution of the grid modernization plan designed by the Ministry of Energy and CFE. Without a reliable electricity system and a smart grid, Mexico’s energy-mix goals will be difficult to attain. To that end, CFE published the pre-tender documentation for the development of transmission lines in 2016, under build-operate-transfer schemes, and the Ministry of Energy recently unveiled a new contracting model for the development of transmission lines with private parties, for the design, financing, construction, operation and maintenance of transmission lines for 30 years. This is the next step in the implementation of Mexico’s reform.

Mexico is consolidating the ambitions outlined in the Energy Reform and translating them into business opportunities
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