27 Nov '17, 7pm

As Mexican Solar Auction Prices Scrape Bottom, Will Quality be Threatened?

As Mexican Solar Auction Prices Scrape Bottom, Will Quality be Threatened?

The latest round of solar auctions in Mexico yielded an unheard-of average price of US $20.57 per MW, including a $17.70 per MW bid by Enel, a coup for the government. However, as developers and EPCs scramble to under-bid one another in the current market, the price eventually will erode the quality that is deliverable. Indeed, this auction round may have hit the crossing point suggests Enrique Roig, the director of the Solar Steel business of Gonvarri Steel Services, based in Madrid. "It is difficult to understand how bid prices can go lower. It can jeopardize quality and longevity. Low prices versus quality is at crossing point," Roig said. Gonvarri is supplying the single-axis trackers for the 350-MW Solem solar project in in the municipality of El Llano, Aguascalientes state, with a planned startup of unit one in September 2018 and unit two in June 2019. The plant is b...

Full article: http://www.renewableenergyworld.com/articles/2017/11/as-m...

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