By design, wind power’s system and favorable wind sites usually do not favor solar energy, with few exceptions. Favorable wind resources are more often associated with mountainous systems or within close proximity to them, as opposed to favorable solar resources, which are common in large plains with poor winds. Technology-wise, they are absolutely compatible as they compensate each other’s intermittency. Solar is among the most stable renewable energy sources in terms of predictability and with new technological developments, the certainty degree is increasingly higher. Wind power systems, to date, do not provide this degree of power output certainty but they can start producing power as early as 4am, compensating solar power’s limitation of producing power at late hours..
Almost 50 percent of CFE’s 100,000km of HV transmission lines are more than 20 years old. Given that estimated generation growth is between 4 and 5 percent annually, and there will be budget limitations at the federal level, the need for private investment to extend and revamp this aged infrastructure is a critical reality. An important issue that worries potential investors in Mexico is rights of way. The preliminary guidelines for the bidding of the Oaxaca-Valley of Mexico DC transmission lines are out but we have yet to see the final guidelines that address all the questions that developers had. This project will play a major role in alleviating the bottleneck for wind projects but is not the only important one.
Due to the regulations for CEL requirements from the beginning of 2018, CFE needs to acquire a large amount of CELs to compensate for the energy it still produces using fossil fuels. The CELs are expected to attract tremendous demand when they become available so everyone believes CEL prices will increase dramatically. Eosol’s strategy formed almost in response to the auctions due to the absence of private projects. With our full-equity advantage, clients started knocking on our door. In the last 10 months, we have received more renewable energy development projects than in the six years since our company was established.