1) ALERT
Call to Bid Issued for Mexico's Second Long-Term Power
Auction
May 3, 2016
Jose Antonio Prado
Carlos Ochoa
Aldo Gonzalez
Jose A. Toriello Martinez
Mexico's National Center for Energy Control (CENACE) on April 29, 2016, published its call to bid for
the second long-term power auction in Mexico, seeking to award power purchase agreements
(PPAs) of 15 to 20 years, primarily to clean energy producers. It is expected that in this second
power auction, other load points responsible entities also will be entitled to purchase energy along
with the Federal Electricity Commission (CFE).
Bidders interested in participating in this second power auction are eligible to offer power, capacity
and clean energy certificates (CELs) to the CFE, which will be acting again as purchaser for this
auction. The bidding guidelines will be published by CENACE on May 13, 2016, and the deadline for
bidders to register is on July 22, 2016, with an approximate registration fee of US $1,550.
In order to participate, bidders should submit information evidencing their experience in the
development and financing of energy projects, as well as a bid bond for an amount calculated
accordingly to the size of its offer. The call to bid provides that power plants related to the offers
submitted must be commercially operating by Jan. 1, 2019.
First Power Auction Results
According to the results of the first power auction, CFE contracted more than 5.4 million megawatts
(MW) of power, including 1.384 million MW from wind energy sources and 4.018 million MW from
solar projects, and 5.38 million CELs. However, no capacity was awarded.
The energy team from Holland & Knight's Mexico City office, led by Partners José Antonio Prado and
Carlos Ochoa, represented eight bidders in the first power auction, all of which were successfully
prequalified to submit a final bid. The firm's clients participated with 18 projects and a total installed
capacity of 750 MW, representing more than 10 percent of the final prequalified bidders.
Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be
used as, the sole source of information when analyzing and resolving a legal problem. Moreover, the laws of each jurisdiction are different
and are constantly changing. If you have specific questions regarding a particular fact situation, we urge you to consult competent legal
counsel.
2) Authors
José Antonio Prado focuses his practice on energy, real estate, infrastructure and
corporate services. Mr. Prado has more than 15 years of experience working in the
energy sector, representing Mexican state-owned entities and energy-related
corporations. Most recently, he served as general counsel for the Comisión Federal
de Electricidad (CFE) (2011-2013). From 2010 to 2011, Mr. Prado held the position
of legal chief compliance and internal affairs officer for Petroleos Mexicanos
(PEMEX). He also served as general counsel for the hydrocarbons section at Mexico's Ministry of
Energy (SENER) from 2009 to 2010. Prior to that position, Mr. Prado was the general counsel for
Luz y Fuerza del Centra (LYFC) from 2007 to 2009; general counsel for Mexico and Latin America
for Koch Industries and Invista from 2006 to 2007; general counsel for contracts and corporate
affairs for PEMEX from 2001 to 2005; and senior associate for public bids, infrastructure and energy
practice at Deloitte and Touche-Tomathsu Consulting Group from 2000 to 2001.
+52.55.3602.8003 | joseantonio.prado@hklaw.com
Carlos A. Ochoa Valenzuela is a partner in Holland & Knight's Mexico City office.
He focuses his practice on energy, infrastructure, real estate and corporate services.
Mr. Ochoa has more than 12 years of experience working in the energy sector. He
has extensive experience in the areas of electricity, oil, gas, renewable energy and
government procurement. He is also well versed in public bids and contracts,
regulatory matters and project finance.
+52.55.3602.8012 | carlos.ochoa@hklaw.com
Aldo González Melo is an attorney in Holland & Knight's Mexico City office. He
practices in the areas of project finance, public finance and renewable energy with a
particular emphasis on international and cross border transactions.
+52.55.3602.8040 | aldo.gonzalez@hklaw.com
José Toriello Martínez is a Mexico City business attorney who practices in the
areas of energy, project finance and corporate services, with a focus on international
and cross border transactions.
+52.55.3602.8028 | joseantonio.toriello@hklaw.com
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