At Mexico’s first clean-energy tenders in March and November 2016, average winning prices came in at $48/MWh and $33/MWh respectively. At last November’s auction, it was $20.58/MWh — with the lowest bids coming in at a world record $17.70/MWh for wind, and a Latin American record of $19.70/MWh for solar.

“It’s hard to understand how prices got so low,” says Brian Gaylord, senior Latin America wind-power analyst at consultancy MAKE.

Leopoldo Alberto Rodríguez Olivé, president of the Mexican wind power association, AMDEE, believes that the price drops can mainly be explained by two factors.