/
Weekly Roundups

CFE to Establish a Single Energy Tariff: Bartlett

By Cas Biekmann | Thu, 10/28/2021 - 14:49

CFE’s Director General Manuel Bartlett outlined the reform proposal and its expected benefits to Congress. In other news, thermal energy might be Mexico’s dominant power source in 2030, as Mexico gears up for COP26. Read this and more in the weekly roundup!

 

MEXICO

CFE Seeks to Establish a Single Energy Tariff: Bartlett

CFE’s Director General Manuel Bartlett told Congress that if President López Obrador’s proposal to reform the energy sector is voted through, the state utility would have more tools to lower tariffs and therefore energy costs. CFE would furthermore establish one single tariff instead of the different systems across the country.

 

Thermal Power May Dominate Energy in Mexico in 2030

Thermal power in Mexico is expected to dominate energy generation by 2030, even if coal power capacity only marginally decreases from 6.02GW to 5.67GW in the next decade as currently forecasted. Global Data’s latest reports highlight that Mexico has “retracted its initial coal phase-out plan and currently has no phase-out policy in place.”

 

State-Centered Lithium Production Plan is Also an Energy Issue

Seemingly unrelated to other parts of the constitutional electricity reform proposal, the government included a provision that would grant it the exclusive right to extract lithium in the future. At first glance, extracting the ‘white gold’ is a mining issue, but lithium is firmly tied to the modern energy industry.

 

Mexico Pacific Progresses Low Carbon LNG Export Project

Mexico Pacific Limited (MPL), a company located on Mexico’s West Coast, is gearing up to become a key player in exporting liquefied natural gas (LNG) to Asian markets. A collaboration with ConocoPhillips and Bechtel is among the company’s latest feats.

 

Mexico Asks for Climate Financing Support Ahead of COP26

Mexico said it will ask for a more ambitious financing model to tackle the climate crisis ahead of the COP26 climate summit in Glasgow, taking place from Oct. 31 to Nov. 12. The disparity between developed and undeveloped economies and how this shapes decarbonization strategies will be a key talking point at the summit.

 

COPARMEX: 12,000MW of Renewable Energy at Risk of Indirect Expropriation

COPARMEX furthermore believes that foreign companies will be successful in their litigations efforts if the reform were to pass.

 

INTERNATIONAL

Iberdrola’s Renewable Energy Business Drives Global Profits

With only a quarter of the year remaining, the renewables business of leading global power producer Iberdrola has boosted its net profits by US$1.28 billion. The company’s 3Q21 financial results reflect its market power, though operations in Mexico are hampered by the government’s endeavors to curtail private influence in the energy sector.

 

US Natural Gas Price Forecast Remains Bullish

Narrow global supplies and a strong demand going into the winter season is driving natural gas price forecasts for 2021 and 2022 up even further, say analysts at Raymond James. Prices for 2021 are set at US$3.70/MMBtu for all of 2021 and US$4.50 for 2022.

Cas Biekmann Cas Biekmann Journalist and Industry Analyst