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.

Vestas is the leader in the wind industry worldwide. Vestas’ added value for our clients, as well as the government, is our comprehensive view of the sector. We understand the business from end to end, starting with the development of a wind farm project all the way to plant generation and power consumption. These projects are not just about energy generation but also about generating returns for investors. This capacity of adapting to new markets, understanding the new rules of the game and being able to move all the drivers of a project — CAPEX, OPEX, technology and capital costs — creates a competitive edge in project optimization considering all the elements that we provide. Understanding the Mexican context is fundamental. Without the whole picture of the country’s interconnection or grid management needs, we cannot help clients

Social aspects are extremely important for large-scale projects such as wind farms. There are regions in Mexico that are more sensitive than others, like indigenousowned lands. Wind energy companiesare bound by law to perform a social impact assessment, which is challenging now because not all the regulations and guidelines have been defined. A right approach to the communities implies close interaction and well-designed communication strategies that get the message clearly to the communities. Many communities in Mexico tend to think that infrastructure projects are equal to money but they must keep in mind that private companies are not the government. Project developers should have social plans to make a positive impact on the project’s surrounding communities but these plans do not substitute government actions.