Mexico is on track to generate the world’s cheapest solar power — with prices as low as 1.77¢/kWh, according to Mexico’s Centro Nacional de Control de Energía (Cenace). Mexico’s Department of Energy recently announced the companies selected to complete new renewable power projects, and the rates at which this electricity will be sold. The lowest price for solar in Mexico has been set just below that of Saudi Arabia at 1.77¢/kWh, and is expected to continue to decrease to 1¢/kWh in 2019 or sooner. In this most recent bidding round, 15 bids from eight solar and wind energy companies, including Canadian Solar, ENEL Green Power, and Mitsui, were approved in a sign that Mexico’s renewable surge is not slowing down.
The clean energy projects recently approved by Mexico will be online and selling power by 2020. These projects and others are important steps towards meeting Mexico’s goals under the Paris agreement as well as regional goals established by Mexico, the United States, and Canada. In 2016, all three countries pledged to source 50 percent of their power from renewable sources by 2025. Canada is on track to meet this goal while Mexico continues to build up its renewable portfolio. As it was when the regional pledge was made, the United States still lags behind in its transition to clean energy.
Mexico’s achievement of cheap solar energy exceeds the expectations of skeptics who believed that such a price in a country like Mexico, rather than one like wealthy Saudi Arabia, would be highly unlikely. Despite its economic challenges, Mexico is proving that affordable renewable energy is possible around the world, brightening the prospects of the Paris agreement even as the United States refuses to participate. If current trends continue, the world may soon be faced with the prospect of plentiful, clean, affordable energy, the possibilities for which are endless.