French renewable energy developer Neoen has been awarded a 377MW(AC) solar PV project in Mexico’s third renewable energy auction.

The project in the state of Aguascalientes is due to be connected to the grid in June 2020.

The average price of the wining bids was US$20.57/MWh, according to Mexico’s National Centre for Energy Control (CENACE). A Neoen release said this makes Mexico the most competitive market in Latin America for renewable energy.

Canadian Solar was also awarded contracts for solar projects in the Mexico auction totalling 367MW of capacity.

Meanwhile, Enel won 593MW of wind energy projects at a record low price of US$17.7/MWh.

With the new project, Neoen strengthens its Latin American presence, which includes a solar power plant in operation in El Salvador, two solar power plants currently being financed in El Salvador and Jamaica, and a large portfolio under development in Guatemala, Colombia and Argentina.

Lionel Bony, Neoen Mexico and Central America manager, said: “The continuing fall in the price of renewable energy in Mexico is a sign of the success of energy reform in its ability to attract investments and ultimately reduce the price of electricity for all Mexicans.”

Xavier Barbaro, Neoen CEO, adds: “This project bolsters our presence in Latin America. With over 750MW of projects built or granted, it is our third largest development area after EMEA and Australia.”