Denmark and Mexico agree energy cooperation

DENMARK: Danish and Mexican energy ministers have signed a letter of intent to collaborate more closely on energy and climate change issues, increasing export potential for Danish wind energy companies.

Danish energy minister Lars Lilleholt (left) met Mexican counterpart Pedro Joaquin Coldwell in Denmark

On an official visit to Denmark, Mexican energy minister Pedro Coldwell signed a letter of intent with Danish counterpart Lars Lilleholt to cooperate on energy and climate change.

According to the Danish energy ministry, the two ministers discussed opportunities for cooperation, with Denmark eager to support Mexico's active wind market.

Mexico has a 25% target of electricity generation from renewable energy by 2018.

"Closer cooperation with Mexico opens the door to increased export opportunities for Danish companies for renewable energy and energy efficiency," said Lilleholt.

"Mexico was Denmark's 28th largest export market for goods in 2014, which is relatively modest. If the positive economic development in the country compared with Danish companies' core competencies in green solutions, everything indicates that Mexico is a huge potential growth market," he added.

Mexico held its first power auction last month, with solar dominating and mixed results for wind. Combined solar and wind prices averaged $47.78/MWh, the lowest achieved in any major wind market according to Mexican wind association Amdee.

By the end of last year, Mexico had 1.2GW of new wind capacity under construction, according to the Global Wind Energy Association (GWEC).

Amdee believes at least 800MW of that will enter operation in 2016, an improvement on the 692MW installed in 2015 that took Mexico's cumulative capacity to 3,073MW.