CFE Reports Losses While Renewable Energy Strengthens

CFE reports multimillion dollar loss during 2Q2022. Meanwhile, Mexico City’s government relies on solar energy to address energy poverty in the capital. Moreover, renewable energy projects in green hydrogen and distributed generation consolidate in Mexico despite energy policy. In other news, Mexico Business Forum 2022 ECHO will gather industry leaders and policy-makers in September to discuss the future of the industry.

Ready for more? Here is the Week in Energy!

Mexico

CFE Reports Loss of US$430 Million in 2Q22       

According to the financial statement of CFE sent to the Mexican Stock Exchange, it lost US$430 million. The losses are mainly due to soaring prices for the natural gas that CFE uses in its plants to generate electricity. Nevertheless, its US$2.31 million total losses over 1H22 are much lower than the US$689.23 million it lost in 1H21.

Mexico Energy Forum 2022 ECHO to Discuss Industry’s Future 

Mexico’s energy market faces crucial challenges ahead. With utility-scale renewable energy development slowing down due to the government’s shift in energy policy, Mexico’s energy mix has grown more dependent on fossil fuels for power production, specifically on natural gas. To create resilient strategies, spaces to maintain a dialogue and foster understanding within the energy industry are more relevant than ever. These topics and more about the present and future of the Mexican energy sector will be discussed by decision-makers and key players at Mexico Energy Forum 2022 ECHO, which will be preceded by Mexico Natural Gas Forum 2022.

Spanish Company Bets on Green Hydrogen in Mexico

SENER Ingeniería México aims to replicate its green hydrogen model implemented in Spain in Mexico. The company’s objective is to become leaders in the production of green hydrogen in the country.

Mexico City Bets on Solar to Address Energy Poverty

Mexico City faces a high percentage of energy poverty among its inhabitants in vulnerable areas. To combat the issue, the city’s government found a strong ally in solar energy technology.

CFE Contradicts Moody's and Dismisses Effects on Hydroelectric Generation Strategy Due to Drought 

Mexico’s state electric utility company CFE declared that the dry season will not impact its plan to produce power with its hydroelectric plants. The government’s clean energy transition strategy is strongly based on optimizing the water resources that already exist in the dams.

Potential Tariffs on Avocado, Beer and Autos if Mexico Defaults on Energy Agreements        

COPARMEX voiced its concern that if Mexico persists with its current energy policy during the consultation process with the US, the US could place tariffs on products such as avocados, beer, cars and other products, based on non-compliance clauses in the US-Mexico-Canada Agreement (USMCA).

Mexico Has Strong Potential for Energy Storage Solutions       

The Indicative Program for the Installation and Retirement of Power Plants (PIIRCE), contained in the National Electric System Development Program (PRODESEN) 2022-2036, projects that by 2036, some 4,505MW of energy storage systems could be installed in the country. The storage potential can contribute to the stability, reliability and security of distribution networks.

TC Energy Contemplates Mexico Within its Global LNG Strategy          

As global thirst for liquefied natural gas (LNG) grows. TC Energy expects to see its natural gas infrastructure capacity in North America, especially in Mexico, expand in the next several years as short-term demand increases rapidly.

International

ROSEN Group in Malaysia Secures Five-Year Contract for Pan Malaysia In-Line Inspection

ROSEN Group, a global supplier of leading technology for pipeline integrity management has won three packages for the 5 years Pan Malaysia for Pipeline In-Line Inspection Services for PETRONAS Group of Companies and Petroleum Arrangement Contractor (PACs).