BNamericas – Mexico's Power Market Inspires Most Optimism in LatAm – Energy Lawyer

    View Authors October 2016
    With electric power auctions having been held recently in Mexico, Chile and Argentina, Washington DC energy partner Kevin S. Levey gives his verdict on the three markets and evaluates the challenges and opportunities ahead in an exclusive Q&A interview with BNamericas.

    In the October 24, 2016, article “Mexico's Power Market Inspires Most Optimism in LatAm – Energy Lawyer,” Kevin opined that out of Mexico, Chile and Argentina, Mexico has the most potential. The pricing is incredibly low, solar irradiation is solid and the country has a fairly mature project financing market. However, the issue of procurement for projects still looms. Kevin also discussed the major global players awarded contracts in the March 2016 and September 2016 auctions, if the record-low solar prices will translate into a profit, and what Chile’s transmission law means for the future growth of solar projects. Kevin concluded with saying how the global market and its players “need to be patient with Argentina.” Compared to other Latin America countries, it has lagged behind politically, not just in the renewable sector, and needs to rebuild confidence in the financial markets. Kevin credited Macri with doing a good job renegotiating sovereign debt after the default, and there are signs showing things are turning around. However, he reiterated that “patience” is key when it comes to Argentina.

    Comments from Kevin’s BNamericas Q&A article were featured in several industry trades, including the Solarplaza article “Argentina Makes Good on Its Solar Promise, but Clouds Linger;” the Green Tech Media article “Despite Record-Low Solar Prices in Latin America, Challenges Remain;” the Energy Monitor Worldwide article “Latin America Auctions Bring Low Solar Prices but Challenges Remain;” and the BNamericas article “Mexico’s energy reform will bear fruit, but challenges await.”