According to its annual report sent to the Senate, CFE drastically increased its use of fuel oil for power production. Meanwhile, a district court denied Iberdrola an amparo to protect its plant in Nuevo León. Furthermore, CFE explores geothermal generation in Puebla.
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CFE increased the use of fuel oil for electricity generation by 34.7 percent in 2021. The oil residue is greatly polluting due to its high sulfur content. CFE generated around 45.22TWh of electricity through fuel oil, equivalent to 13.8 percent of its total power production. The figure shows a drastic increase compared to the 33.56TWh produced in 2020, equivalent to 5.6 percent of the state-owned company's electricity generation for that year.
Iberdrola suffered a new setback in a Mexican court. The Spanish company was denied an injunction to maintain the generation permit for its power plant in Nuevo Leon, losing the battle against the energy regulator, CRE. On Monday, May 23, a district judge, dismissed Iberdrola's request for an amparo filed on May 18 against the federal government's provisions for granting electricity generation permits.
With the purpose of building an exploratory well to provide some insight regarding the geothermal resources of the region and their potential use for energy generation, CFE recently conducted an analysis of environmental impact in Chignahuapan, Puebla. The total required investment required to build the new power plant reportedly stands at US$3.3 million.
Despite the constant regulatory changes implemented by the government, Spain maintains its interest in Mexico as an attractive energy sector destination. Jaime de la Figuera, Director of international expansion, IFEMA said the institution aims to foster a collaborative energy development approach between Spain and Mexico through the exchange of information and solutions. The first Mexican edition of Genera, a 25-year-old Spanish trade fair specializing in energy, environment and the energy transition, would be a key part of these efforts.
Vulnerable communities in Oaxaca gained access to electricity thanks to the Lights of Hope program carried out by Iberdrola and Iluméxico. Through the installation of photovoltaic (PV) solar panels, the program fights energy poverty in communities that cannot be interconnected to the national grid due to their remoteness. The initiative started in 2019 in the Huasteca region of San Luis Potosi. Due to its success, the second round of distributed generation (DG) installation was designed to improve access to energy in Oaxacan municipalities.
On April 29 2022, the National Institute of Social Economy (INAES) presented a nine-year roadmap to develop cooperative community-based business models to produce sustainable power, hoping to spread DG’s benefits to Mexico’s many communities.