Last week’s decision by the Mexican electricity system operator CENACE to suspend all performance tests of wind and solar farms during the coronavirus emergency led to the shutdown of a 375-MWp photovoltaic (PV) plant owned by French power producer Neoen SA (EPA:NEOEN).
Neoen said Thursday its El Llano solar farm was undergoing testing with CENACE and generating electricity for the spot market before it was about to start to meet obligations under a long-term power purchase agreement (PPA) in early July.
On May 3, when CENACE’s decision came into effect, El Llano had to halt production.
Neoen estimated that the plant shutdown will cost the company USD 2 million (EUR 1.8m) per month in lost earnings before interest, taxes, depreciation and amortisation (EBITDA).
The company secured the El Llano project in Mexico’s third renewable energy auction in 2017 for a tariff of USD 18.93 per MWh. Construction was completed in early 2020 and this February the plant started to inject power into the Mexican grid.
CENACE’s decision is not time-limited and affects only tests of wind and solar farms. Ongoing tests were suspended and new will not be authorised for the time being.
CENACE, acting on orders of the Mexican energy secretariat SENER, said the decision had been made to ensure the stability of the power supply during the coronavirus crisis in light of lower demand and grid disruptions that had occurred during months preceding it.
