CFE chose the Austrian company Andritz Hydro for an important hydroelectric update contract. In other news, a government decree denoting priority infrastructure projects as matters of natural security attracts attention. General Motors voices its concern about Mexico’s energy policy, which could potentially harm foreign investments. The much-discussed, publicly pushed Puerto Peñasco project secured the first phase of its major investment. Read this and more in the weekly roundup!
State utility CFE informed the public it chose the Austrian Andritz Hydro corporation to overhaul 9 of the 14 hydroelectric projects in a contract valued at US$892.9 million. CFE’s investment would increase annual hydro power production by 1,860GWh and modernize its equipment to extend its longevity by another 50 years.
Without Direct Foreign Investment (FDI) toward power production it will be difficult to meet the growing demand for electricity, which grows 2.7 percent per year, said the Employers Confederation of the Mexican Republic (COPARMEX). To grow capacity accordingly, foreign companies need to invest approximately US$3 billion.
Mexico’s government has issued a decree that ensures priority public works, including those for the energy sector, are considered a matter of national security. Critics said the decree would make tendering processes less transparent and could grant the government the power to sidestep regulators and shield it from legal intervention such as amparos.
Mexico’s government has begun its investment in the CFE-led Puerto Peñasco project, positioned to become the world’s 8th largest photovoltaic solar power plant. The project’s first phase will cost US$424 million.
CEO of General Motors (GM) Mexico, Francisco Garza, voiced his concern about renewable energy’s future in the country. Without a solid legal basis for renewables, GM and other leading companies will not reach their net zero goals. As a result, automotive investment would take a major hit.
Capital fund Sancus has launched two investment vehicles that aim to raise US$225 million in an effort to cooperate with global bank Santander’s Asset Management arm. With the funding, the vehicles aim to invest in Spanish renewable energy projects by creating a link toward Mexican capital.
During 1H21, Spanish energy giant produced 315GWh of wind energy in Mexico, 20.9 percent less compared to the same period last year.
The US clean energy transition will pressure Mexico to follow in its path, a senior US official told Argus Media. US-based stakeholders are monitoring Mexico’s energy plans closely in the case that they could jeopardize US business or energy transition plans.
Cox Energy América became the first PV-solar company to be listed on a Latin American stock exchange by issuing its IPO in Mexico. Now, the company has initiated its dual listing process in the BME Growth stock exchange in Spain.