CFE Studies 500MW Renewable ProposalBy Cas Biekmann | Thu, 12/17/2020 - 12:44
In this week’s top stories, CFE shows interest in renewable development for the first time under Manuel Bartlett’s leadership. In other news, SENER highlights the progress of energy projects stemming from long-term energy auctions. Internationally, Joe Biden’s team has revealed their pick for energy minister.
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CFE Studies 500MW Renewable Proposal
Mexico’s state-owned utility CFE is examining the potential to build 500MW of renewable capacity, without specifying which renewable resource it is interested in. The plan furthermore includes an update to CFE’s eight hydroelectric power plants, leading to an investment of MX$12.2 billion (US$602 million) for the following five years, reported BNAmericas. The move could be the current administration’s first foray into renewables, with recent plans focusing firmly on thermal energy generation based on natural gas.
SENER Boasts Progress in Renewable Energy From Auctions
Mexico’s Ministry of Energy highlighted the progress of renewable energy projects stemming from the results of three electricity actions, derived from Peña Nieto’s 2014 Energy Reform. In the past two years, the installation of wind and solar projects has reached 74.6 percent, an equivalent of 5,000MW coming from 2,450MW in 2018. Minister of Energy Rocío Nahle added that this intermittent energy needed backup from fossil fuels when not producing energy, reported Forbes.
Iberdrola, Lluméxico and Oaxaca’s Government Join Forces to Power Homes
Iberdrola’s ‘Luces de Esperanza’ program has benefited 95 families in the municipality of San Pedro Pochutla with solar panels. In total, 380 inhabitants are reaping the benefits of the program, which will continue until 2024 and aims to benefit 500 households in total through five stages. To this end, Iberdrola will invest MX$30 million (US$1.5 million).
Alterations Shake Up 2020’s Renewable Project Financing
Soon after the López Obrador administration came into power, the government’s particular views on how energy should be administered brought significant changes to the sector. After the enactment of the Energy Reform in 2014, long-term energy auctions helped to establish utility-scale projects financed by a variety of parties as a strategy for renewable energy development. Now, legal uncertainties and the effects of COVID-19 have made progress far more complicated. MBN's experts chime in on what trends are arising in the area of renewable project financing.
Enel Begins Constructing 1.3GW of Renewable Capacity in Brazil
According to Energía a Debate, Enel Group’s Brazilian subsidiary has begun the construction of five new renewable energy plants in the country. The projects, consisting of four wind farms and one solar plant, total 1.3GW of capacity.
Biden to Pick Jennifer Granholm as Energy Secretary
Reuters reported that former Michigan Governor Jeniffer Granholm will be tapped by US President-elect Joe Biden. As Governor, Granholm pushed through a modest energy standard requiring a portion of renewables to be generated by the state and backed proposals to build battery manufacturing plants.