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Weekly Roundups

CFE Issues Stock Certificates, Plans Transmission Projects

By Cas Biekmann | Thu, 05/27/2021 - 14:15

Mexico’s drop in wind investment, new CFE Transmission projects and global decarbonization pressure are part of this week’s top stories. Ready for more? Read the roundup here!

 

Mexico

Energy Sourcing: Opportunity to Create Competitive Advantages

The promotion and use of renewable energies in companies' supply chains have picked up steam in recent years. With President Joe Biden's appointment, the US made its environmental agenda a priority and as its main trading partner, Mexico faces a challenging outlook if it is to maintain and increase its attractiveness for foreign investment. During Mexico Business Forum 2021 Virtual Edition held on May 26, energy industry experts met in the panel “Energy Sourcing: Opportunity to Create Competitive Advantage” to discuss the electric reform, climate change and clean energy sourcing.

 

CFE Transmission to Carry Out Slew of Projects

CFE’s transmission arm reported it will carry out 64 projects in order to meet Mexico’s energy demand while maintaining stability and reliability of the national transmission system. Between 2020-2024 it is to carry out 199 priority projects, 177 stemming from PRODESEN and 22 further initiatives. The projects amount to an investment of US$3.4 billion from CFE’s budget and US$1.2 stemming from PIDIREGAS, public infrastructure projects financed by the private sector. With the return of PIDIREGAS, a significant private investment opportunity comes into existence for transmission infrastructure.

 

Mexico Loses LATAM Lead in Wind Energy Development

Mexico dropped from second place to fourth place in a ranking that calculates Latin America’s wind infrastructure growth, said President of the Global Wind Energy Council (GWEC) for Latin America, Ramón Fiestas. Changes in the country’s legal framework brought on by the government’s reforms affecting the energy sector are key factors behind this drop, as new investment is expected to decrease by 61 percent in 2021.

 

Missing Puzzle Pieces Prevent Mexico’s Storage Take-Off

Storage is perhaps one of the most common terms floating around in the international energy arena. Governments, companies and experts see it as major building block for a future decarbonized and energy-efficient society. As renewable energy begins to grab a larger share of the global energy mix, the great need for diversification and flexibility makes storage developments somewhat less surprising. However, in the Mexican context, both renewables and storage are lagging compared to other areas. How is storage developing and what does Mexico stand to gain from it?

 

CFE Issues Stock Certificates (CEBURES) for US$501.5 Million

CFE is to use the resources to refinance obligations it has committed to. The stocks were rated AAA by S&P Global, Moody’s and Fitch, with the underwriters being BBVA, Citibanamex and Santander.

 

Banverde Raises Funds to Acquire 80MW of Rooftop Solar

Mexican private equity fund Banverde, which focuses strongly on solar assets, has raised US$57 million. Today, the fund has US$76 million available to buy and install around 80MW of distributed generation-based solar projects in the Mexican market. The Financial Corporation for the Financing of Infrastructure (CIFI) was the main strategic partner in this financing round.

 

International

Oil Supermajors Face Enormous Pressure to Decarbonize

This Wednesday, several high-profile events took place all at once. A Dutch court ordered supermajor Shell to cut its oil and gas carbon emissions by 45 percent before 2030. ExxonMobile’s board saw a small climate-focused activist investor group win two seats and Chevron’s management saw its members vote to cut more carbon emissions. A climate campaigner interviewed by The Guardian called it a “cataclysmic” day for oil companies, which will see them face intensely increasing pressure to make good on their broader decarbonization promises.

 

Vestas Cracked the Wind Power Waste Puzzle

A coalition featuring academic and industry leaders spearheaded by Danish wind turbine frontrunner Vestas has developed a technology that turns the material used in recyclable wind turbine blades. The new advancements represent an enormous step toward a fully sustainable wind turbine value chain, as until-now unrecyclable blades were piling up in landfills.

The data used in this article was sourced from:  
CFE, CIFI, The Guardian, Reuters
Cas Biekmann Cas Biekmann Journalist and Industry Analyst