Chamber of Deputies Endorses López Obrador’s Energy BillBy Cas Biekmann | Thu, 02/25/2021 - 13:38
Mexico’s Chamber of Deputies has approved President López Obrador’s energy initiative, effectively resulting in a partial energy counter-reform once it passes through the Senate. In other news, natural gas remains a much-discussed topic and Ingeteam signs an important contract. Ready for more? Here is your weekly roundup!
Chamber of Deputies Endorses López Obrador’s Energy Bill
The Chamber of Deputies approved the controversial initiative, modifying the Electrical Industry Law (LIE) with 304 votes in favor, 179 against and 4 abstentions, Forbes reported. The bill, among other changes, modifies the dispatch priority of power plants, benefiting CFE’s plants over private power producers. It also allows CFE to review and, if deemed necessary, deny self-supply permits if they were obtained through “fraud.” Critics of the counter-reform already deemed a blow to the position of Mexico’s private energy industry, saying that the bill goes against international commitments, such as USMCA and the UN’s Sustainable Development goals.
Ingeteam in Charge of O&M for Enel’s 220MW Solar Park
Ingeteam signed a two-year contract with Enel Green Power to provide operations and maintenance to the 220MW Magdalena II solar park, which started operations in late 2019. The O&M will focus on preventive and corrective maintenance works for inverters, solar panels, communication cabinets and transformers, Ingeteam reported, adding that it is providing protection, control and measurement systems for the park’s lifting substation.
Natural Gas Investment Streak Strands in 2020
Mexico ended a boom cycle in foreign direct investment (FDI) after the flow stopped in 2020. From 2010 to 2019, Mexico received over US$10 billion in natural gas investments, making it the biggest area of FDI in energy at that time.
Gas Shortages, Blackouts Force Government to Act
Texas wants to stop all-natural gas exports to nearby states and other countries to meet its own demand first. This ban occurs after the state got hit by a rare cold snap that disrupted supply and caused major blackouts. For Mexico, this situation poses a direct problem: government data shows that 65 percent of its energy mix depends on natural gas, most of which is imported from the US. As a result, the Mexican government asked citizens to ration their energy use, Reuters reported. CFE is planning to deal with elevated gas prices and examine storage possibilities.
New Projects Coming Online Boost Neoen’s Revenues in 2020
French energy giant Neoen reported revenues totaling US$366 million in 2020, an increase of 18 percent compared to revenues reported in 2019. The renewables-focused power producer says the result was bolstered by new capacity coming online in Mexico and El Salvador, particularly.