As more people consume more electricity, we want to make sure the quality of energy they are consuming is improving. Renewable energy is not only cleaner than conventional generation but also cheaper. The issue is the concentration or distribution of power generation in certain regions which requires new grid interconnections and improved grid stability. It will be critical to ensure electricity can move from one region to another. Solar energy’s ability to scale up or scale down is a huge benefit, given that basically every region in Mexico can install solar panels in a cost-effective way. We hope for a trickle-down effect in distributed generation, enabling easy access to this technology across socioeconomic spectrums
The first power auction acted as a pilot, in a similar manner to phase one of Round One in the hydrocarbons industry. CFE was playing it safe to see how the market reacted before making any major bids. It was the first time that the Ministry of Energy, CENACE and CFE conducted such a process, so they wanted to learn. The outcome of the first power auction was qualified as a success by several international media, including The Economist, Forbes and Bloomberg, and this successful experience has given Mexican authorities the confidence to strengthen upcoming editions. Even though renewable energies are not as sensitive to resource limitations as traditional technologies, they are still based on natural resources that are a constraint to a certain extent. We want to avoid having critical situations as happened in Spain where more solar energy capacity was installed than the country could handle.