CFE Faces Trying Times in 2020By Cas Biekmann | Thu, 11/05/2020 - 16:41
CFE continues to face challenges, as ASF published a report deeming the company uncompetitive on its own after reporting large losses for the first three quarters of 2020. Cementos Moctezuma will develop its own clean energy and French investors bet on Mexico for renewable energy. Internationally, a The republican majority in the US Senate could thwart Biden’s renewable plans, even if he comes out a victor.
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ASF Report Highlights CFE Challenges
The Federal Audit Office (ASF) published its Report on the Public Account’s Superior Fiscal Results for 2019 where it mentions that CFE’s subsidies, its uncompetitive tariffs, the ageing of its infrastructure and inefficient governance have caused the company to be unprofitable and incapable of generating economic value. These deficiencies mean the company is not able to guarantee operations with efficiency, effectiveness, transparency and accountability, reported Forbes.
In other CFE news, Mexico’s state utility has recoded losses totaling US$3.18 billion as of September 2020. These figures, have been greatly influenced by the effects of COVID-19 and show a stark contrast with the same period in 2019, when CFE recorded roughly US$104.3 million in profits. Nonetheless, the company appears to be bouncing back to old levels.
Cementos Moctezuma Invests in Own Solar Park
Mexican concrete producer Cementos Moctezuma is planning to invest US$10 million in a solar park that will supply one of its factories. For the energy-intensive concrete industrialist, the project would offer lower emissions and savings on energy costs against its sourcing from CFE, reported Forbes.
The project will have a capacity of 10MW, located in an area totaling 52ha. Between 32,000 and 33,000 panels, using monocrystalline technology, as well as 61 inverters will be used.
French Business Maintains Bet on Mexican Renewables
Despite governmental shifts in the renewable energy sector, changing rules and increased tariffs, French companies continue to move ahead with their long-term investment plans in Mexico, said Marc-Antoine López, Director of Business France in Mexico, to El Economista.
The French representative said that companies will work hand-in-hand with the Mexican government to develop renewable energy. The French have plenty of experience in the area, with players like Total, EDF, Neoen and Dhamma being among the most significant.
Mexico Energy Forum 2021 to Go Digital
The 2021 edition of the energy industry’s quintessential summit, Mexico Energy Forum, will move to the digital sphere. Concerns surrounding the enduring COVID-19 pandemic remain, but Mexico Oil & Gas Summit has already set a successful precedent. Although meeting face-to-face is off the table for now, adopting the latest technologies brings along a wealth of benefits for attendees and panelists.
Republican Senate Majority Could Thwart Biden’s Renewable Plans in the US
The battle for the White House is still very much undecided and the future of the US remains uncertain. Yet, even though Joe Biden might win the presidency, a Republican majority in the senate could still hamper the democratic candidate’s plans to greatly boost renewable energy development, reports Bloomberg News. A republican senate would hamper Biden’s US$2 trillion investment plan in the area.