The first midterm auction is generating considerable expectations at a time when the third long-term electricity auction confirmed an aggressive downward trend in the prices offered. Financing appetite is impaired when renewable energy projects reach such low prices. The midterm electricity auction presents an opportunity where, by modifying the structural and commercial conditions on the supply side, it could pique the interest of private banking and investment funds in a system so far led by development and multilateral banking. This first edition will be decisive to determine the parameters under which private banks can consider the risk acceptable.
We need to acknowledge the effort put in by the authorities to implement an in-depth transformation like the reform in such a short period of time. Globally, one of the lessons we take away from electricity markets is their constant change and evolution. There is no reference model to turn to and ours is still emerging in some ways. The auctions, for example, resulted in awarded and signed contracts, opening the door to new players such as Zuma Energía. The standardization of the power generation market and the implementation of automated O&M systems are pending issues. The success of the auctions also highlighted a challenge for the future in the imminent saturation of the transmission grid and the urgency to develop a decisive expansion plan for the power evacuation infrastructure.