CFE’s Investment Plan at Risk: Moody’sBy Cas Biekmann | Thu, 06/24/2021 - 16:46
Rating agency Moody’s warns that CFE´s utility investment plan is at risk. In other news, IEnova will develop a landmark cross-border battery storage system and green hydrogen investments could start in Mexico. This and more in your weekly roundup!
CFE’s Investment Plan at Risk: Moody’s
Rating agency Moody’s reported this week that CFE’s US$16 billion investment plan is at risk in both its financing and execution. The plan, aiming to support developments up to 2026, could be hampered by CFE’s reduced access to investment markets, in turn as a result of the utility´s and the government’s unclear future policies regarding renewable energy development and decarbonization.
IEnova, IFC Develop Large Battery Storage Project in Mexicali
IEnova and the International Finance Corporation (IFC) revealed they are planning to develop an initial 100MW battery energy storage system (BESS) in Mexicali, Baja California. The project will be developed in phases and could eventually yield 500MW of storage capacity. IEnova’s project represents another meaningful step toward widespread battery storage adoption in the Mexican market.
Mexico’s Nuclear Plans May Come to a Halt
Head of Mexico’s state-owned utility CFE, Manuel Bartlett appeared to shelve its plans to expand nuclear capacity near its Laguna Verde power plant. The potential of small, modular nuclear reactors had been part of the options examined by CFE and Energy Ministry SENER. These expansion plans are now less likely to take off, nevertheless, they could still be exploited in the future.
CFE Announces Big Investments, Addresses Recent Issues
CFE’s Director General Manuel Bartlett announced new energy generation investments and large-scale transmission projects, as well as addressing recent issues with private power producers and a financial dispute with Goldman Sachs.
Mexico Expects US$1.35 Billion in Green Hydrogen Investments, AMH Says
The Mexican Hydrogen Association (AMH) reported that existing green hydrogen projects in the Mexican market will initially attract US$1.35 billion in investment.
China to Up Natural Gas Use Until 2035
The China National Petroleum Corp (CNPC) expects China to use more natural gas as the country shifts away from using coal: around 12 percent in 2030 from 8.7 percent used in 2020. As such, natural gas will become a key transition fuel for the country’s wider and ambitious decarbonization goals.
Reliance, India’s Refining Giant, will Invest Significantly in Renewables
Reliance is reported to operate the biggest refining complex in the world, located in Western India. Like many companies in the oil and gas sector, it aims to make a shift to green energy, planning to invest US$10.1 billion in clean energy projects in the years the come.