Wednesday, May 24, 2017

PJM Capacity Auction Results Are Out

by Robert Eberhardt

Yesterday PJM Interconnection announced the results of the annual base residual auction for capacity for the period of June 1, 2020 through May 31, 2021. For most of the PJM region, capacity prices cleared at lower prices that those set in last year's auction for June 1, 2019 through May 31, 2020. PJM's report on the auction results can be found here.

PJM coordinates the wholesale electricity markets in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia. 

Tuesday, May 23, 2017

The Potential Trade Impacts of Suniva's Bankruptcy

Suniva, formerly one of the largest US manufacturers of high-efficiency solar cells and panels, has potentially triggered an international solar trade dispute. On April 17, 2017, Suniva filed for Chapter 11 bankruptcy protection, two weeks after laying off 190 employees without notice and closing its module plant in Michigan. In its bankruptcy filing, Suniva attributed its inability to compete in the domestic market to the mass influx of cheap solar panels from Asian manufacturers and signaled it would further seek relief under the 1974 Trade Act.  

Friday, May 12, 2017

Mexico Announces Bidding Rules for Third Renewable Energy Projects Auction

The Mexican government announced a new round of auctions that will take place later this year for renewable energy projects. The new round will differ from the first two rounds by allowing offtakers beyond Mexico's Federal Electricity Commission (CFE) to participate.  The first auction's average price was $41.80 per MWh and the second auction's average price was $33 per MWh. Many are expecting prices for the third auction to be in a similar $30-$40 per MWh range. 

Following the second round of auctions that ended in September 2016, the Mexican government hopes that this new round will help the country move closer to its aim of having 35% of electricity production coming from renewables by 2024 and 50% coming from renewables by 2050. All types of clean energy technologies may bid in the auction to provide capacity, clean energy certificates (CELs) and contracted power.

The auction will be managed by the National Energy Control System (CENACE). In addition to overseeing the auction, CENACE will administer the various contracts that result from the auction, as it continues to serve as a clearinghouse for Mexico's new wholesale power market.

The initial version of the bidding rules are published on CENACE's website. Bids submitted to CFE will be published on July 31, 2017 and bids submitted to other offtakers will be published on August 14, 2017.  Decisions will be made by November 22, 2017 so that all projects can plan to achieve COD before January 1, 2020.

More information and sources for this post can be found on CENACE's website as well as here (subscription required) and here.