Mexico embarked on a power sector reform programme in 2013 to develop a new electricity market. The reform objectives included modernisation of the industry, improving competitiveness and fostering social and economic development. On 20 December 2013, the Mexican government published the Energy Sector Constitutional Reform, with the following main objectives: attract investments to modernise the energy sector; increase Mexico’s competitiveness; increase energy exports and reduce dependency on imports; reduce energy costs; and increase national energy security.

This report provides an introduction to the country and power sector context; a description and analysis of the auction design, including auction volumes, qualification criteria and processes, bidder ranking and winner selection, buyer and seller liabilities and approaches to project and credit enhancement; an analysis of auction implementation arrangements, including key role-players/decision-makers and overall institutional context; and key lessons learned and implications for auction design and implementation in sub-Saharan Africa.