In November 2017, Mexico’s third Renewable Energy Auction awarded the lowest solar photovoltaic energy prices in the world. However, red tape and corruption have prevented projects from becoming a reality. Firms have been unable to obtain the necessary construction permits, without which renewable energy projects cannot be developed. This conclusion constitutes an interesting case-study on how copying auction designs from developed countries such as the United States of America (USA) and Germany can result in rent-seeking municipalities and inefficient federal agencies tarnishing what were, on paper, competitive outcomes.
How to Cite:
Guadarrama, C., 2019. Renewable Energy Auctions in Mexico: the gap between design and implementation. The Public Sphere: Journal of Public Policy, 7(1), pp.39–58.