CFE and SENER Analyze the Construction of a Nuclear PlantBy Alessa Flores | Thu, 10/29/2020 - 14:27
SENER, in collaboration with CFE, is analyzing the possibility of building a micronuclear power plant in Baja California. "Because of its continuous, efficient and safe nature, I am convinced of the use of nuclear energy. It is time to talk about nuclear energy in Mexico. Before, it was perceived as forbidden but in reality it is a very beneficial energy," explained Rocio Nahle to Milenio. Currently, Mexico only has one nuclear facility at Laguna Verde in Veracruz. According to Energía Nuclear, among the great advantages of this type of energy is that it does not generate greenhouse gases and is a good alternative to fossil fuels. In addition, more energy is obtained with little fuel and it has a low maintenance cost. However, among its disadvantages is that these sources of energy can be subject to serious accidents, waste takes years to lose its radioactivity and dangerousness and the initial investment can be very high.
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More than 40 US lawmakers wrote a letter to US President Donald Trump to voice their concerns regarding Mexico’s energy policy, reported Reuters. Legislators argue that Mexican President López Obrador’s efforts to save state production companies endanger US investments in Mexico and go directly against regional trade deals.
The letter cites reports of Mexican government bodies delaying or canceling permits for US energy companies. Furthermore, legislators referred to a recent memo circulating in the media, in which López Obrador asks regulators to do what is necessary to rescue PEMEX and CFE. “These efforts violate and contradict the spirit, if not the letter, of USMCA, an agreement among whose primary objectives are to promote growth among the participant countries,” the letter reads. Legislators note “a pattern of obstruction” against the billions of dollars in investment coming from the US and urged Trump to take action to find a resolution and keep the market open like Mexico’s 2014 Energy Reform stipulated.
The company’s adjusted EBITDA for 3Q20 is US$275 million, a 19 percent increase against 3Q19. Its net profit grew 33 percent compared to the same quarter last year. “In these challenging times, we announced strong financial results during 3Q20,” said Tania Ortiz, Director of IEnova.
Good results came mainly from the South of Texas-Tuxpan gas pipeline that became operational, as well as better operating results from the Termoeléctrica de Mexicali power plant. Regarding the latter, IEnova stated that it obtained revenues of US$93.8 million in its electricity business segment, US$3.5 million more than the US$90.6 million in 3Q20. In terms of investment, IEnova took a sparser approach compared to last year, by investing US$98 million now compared to the US$182.2 million in 3Q20.
On Oct. 21, the National Supreme Court of Justice (SCJN) through an unanimous vote, decided to suspend indefinitely SENER’s Policy on Reliability, Safety, Continuity and Quality for the National Electrical System. The policy of SENER was published on May 15, with the objective of limiting private production of renewable electricity and prohibiting the testing of clean energy plants. SENER reports that this decision was the result of decreasing electricity demand during the pandemic and unstable solar and wind generation that harms electrical system efficiency.