Consultation Period Expires for Energy Controversy

The 75-day USMCA consultations period between the US, Canada and Mexico expired this week, without the countries reaching an agreement. Meanwhile, Iberdrola tries to recover its permit to operate Dulces Nombres. Moreover, Queretaro bets on assuring energy security for all its citizens. In other news, Mexico will build a new LNG plant in Coatzacoalcos, Veracruz.   

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Mexico Walks a Policy Tightrope After USMCA Consultation Period

After the US and Canada requested to open consultations with Mexico under the USMCA Dispute Settlement Chapter, the deadline of 75 days of consultations established by the USMCA expired this Monday. Since the disagreement was not yet resolved, the trade deal stipulates that a dispute panel can be requested to review claims and potentially authorize retaliatory action. However, recent developments suggest that the consultation period will be extended.

Iberdrola Continues to Pursue Dulces Nombres Permit

Iberdrola has filed for a new amparo, seeking to reverse CRE’s decision not to modify the generation permit of the Dulces Nombres power plant. The interconnection contract for the plant, which operated under a legacy self-supply scheme, ended in January of this year.

Queretaro Aims to Guarantee Energy Security for all Citizens 

During the First Session of the Advisory Council of the Energy Agency of the State of Querétaro, Kuri González, Governor of Queretaro, recalled his commitment to providing energy to every citizen in the state. He said that the end goal of his administration is to provide electricity to 3,700 families who lack access to it. Therefore, his government will allocate US$2.49 million a year.

Mexico to Build LNG Export Hub in Veracruz  

Mexico plans to build a liquefied natural gas (LNG) export hub at the port of Coatzacoalcos, in the eastern state of Veracruz. The hub will help serve European demand, said President López Obrador. The past week, during an official visit to Mexico City, López Obrador offered German President Frank-Walter Steinmeier to intensify cooperation with Germany regarding LNG.

Nuclear Power Could Produce 14 Percent of Electricity By 2050: UN   

The International Atomic Energy Agency (IAEA) of the UN announced that due to different factors such as climate change, COVID-19, the war in Ukraine and the rising energy prices, the importance of nuclear technology for the global electricity supply is increasing. Today, 430 nuclear reactors are operating in 32 countries, providing approximately 386GW of installed capacity. According to an analysis performed by IAEA, these numbers account for 10 percent of the global electricity supply and about a quarter of all low-carbon electricity.

CRE Favors CFE over Private Energy Companies  

The government is favoring CFE over private initiatives in the energy sector. Today, at least nine projects by major energy developers such as the German BayWa, the Italian Enel and the Spanish Iberdrola are detained by the regulator CRE. "The lack of clear rules by Mexican authorities has led to a loss of private financing for the development of renewable energy projects. All private energy producers have been displaced from the market due to CFE’s monopoly on renewable energy," said Iñigo Segura, CEO, ZGR Mexico.