Insight
Mexico's cancelled auction creates uncertainty for renewables under AMLO's administration
Report summary
Mexico's 4th long-term energy auction was cancelled earlier this month; the latest move under the new AMLO administration's effort to chip away at the energy reforms fully effective starting in 2018. Renewables are now navigating an uncertain business climate moving forward and may have to shift strategy to comply with the change in power. Solar is expected to have near-term success thanks to a progressing project pipeline and better financing conditions, while the longer-term outlook is murkier from potential policy inaction and investment concerns in the Mexican power market.
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