Merchant economics in Mexico: Party on?

2016 was a positive year for merchant players in the Mexico energy market, but these conditions may not last. Where is the market heading, and how will it affect the earnings for Mexican asset owners? ICF sees four trends that will affect future profitability in the Mexico market:

• Near-term: Oil Continues to be Marginal in Many Hours
• Large planned Combined Cycle buildout to 2020
• Price Pressure in the 2020s
• Long-term: what will the Renewable Portfolio Standard push look like?

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