Distributed Generation Boost: The Week in Energy

The country's installed capacity for distributed generation grew by 31.6% between 2023 and 2024, according to the latest report from CRE. During the first half of 2024, capacity increased by 936.57MW, reaching a total of 3,891.22MW. 

Ready? Here is the weekly roundup!

Distributed Generation Capacity Rises 31.6% in 2024
During the first half of 2024, capacity increased by 936.57MW, reaching a total of 3,891.22MW. This growth is attributed to the rise in interconnection contracts with CFE Distribución. The number of contracts grew by 25.5%, from 367,207 to 460,896, representing an increase of 93,689. 

Congress Urges CENACE, CRE to Boost National Grid Reliability
The Permanent Commission of Congress approved a resolution by economic vote, urging CENACE to intensify its efforts to ensure the efficiency, quality, reliability, continuity, and security of the National Electricity System (SEN), aiming to guarantee electricity supply throughout the country. Additionally, CRE was called upon to review, analyze, and, if necessary, update the formulation and calculation methodology of the final tariffs for basic electricity supply in areas affected by natural disasters. 

CFE FIBRA E Sees 81% Increase in 2Q24 Distributions
At the end of the 2Q24, holders of CFE FIBRA E certificates received a total of MX$899.25 million (US$49 million) in tax benefits and capital reimbursement, marking an 81% increase compared to the previous quarter. According to the report from CFE Capital, the manager of CFE FIBRA E, delivered to the Mexican Stock Exchange (BMV), this increase is attributed to high electricity demand driven by seasonal factors and strong performance of the electrical grid. 

Business Leaders Concerned About Judiciary Reform
Francisco Cervantes, President, Business Coordinating Council (CCE), highlighted growing concern among the Mexican business sector regarding the recent initiatives to reform the judiciary and eliminate autonomous bodies promoted by the current administration. Although CCE does not yet have a concrete estimate of the impact on investments, Cervantes highlighted the widespread anxiety about these changes.

Iberdrola Invests US$2.9 Billion in Mexican Renewables
Iberdrola has announced a US$2.9 billion investment during Claudia Sheinbaum’s administration to build at least 17 new renewable energy plants, which will provide a total capacity of 2,85MW. This investment represents 46.8% of the proceeds from the sale of 13 power generation plants, which were sold for a total of US$6.2 billion during the same period. 

PEMEX, CFE Will Remain Independent From SENER: Sheinbaum
Claudia Sheinbaum clarified that PEMEX and CFE will retain their own administrations during the next government. "They will continue to be entities with their own administration. That does not change; it must be that way," stated Sheinbaum. This statement refutes some reports suggesting that the two public companies would be integrated into the SENER.

Renewable Energy Surpasses Fossil Fuels in EU for the First Time
In the first half of 2024, wind and solar energy generated more electricity than fossil fuels across the European Union for the first time, marking a significant shift in the region's energy landscape, according to a new analysis by the think tank Ember. Wind and solar power accounted for 30% of the European Union’s electricity generation in the first six months of 2024, surpassing the 27% generated from fossil fuels. 

Iberdrola Brings Solar Power to Rural Oaxaca Communities
Iberdrola, through its social program "Lights of Hope," has installed photovoltaic systems in 11 rural communities in Oaxaca, which previously lacked access to electricity, benefiting 99 homes and a school. The total investment was MX$7 million (US$408,000). This initiative is part of the fourth phase of the program, which has helped 4,500 people in Oaxaca.

COPARMEX Highlights Ebrard’s Role in Energy Project Growth
José Medina, President, Confederation of Mexican Employers (COPARMEX), announced that Marcelo Ebrard, incoming Minister of Economy, will focus on ensuring an adequate supply of resources to support additional energy projects. During #DataCoparmex2024, Medina mentioned a recent meeting with Ebrard where they discussed the visibility and monitoring of 600 investment projects, mostly directed toward the energy sector.

Women Leaders Push for Gender Equality in Electricity Sector
The Institute of Electrical and Electronics Engineers (IEEE) Mexico Section gathered women leaders in the electricity sector to discuss advances in gender equality and sustainable development. At IEE’s 38th International Summer Meeting on Power and Industrial Applications (RVP AI) and the International Autumn Meeting on Communications, Computing, Electronics, Automation, Robotics and Industrial Exhibition (ROC&C), women experts from both the private sector and government shared their insights, shared CFE in a press release. 

Reforms Threaten Foreign Investment in Mexico's Energy Sector
A recent analysis by S&P Global Commodity Insights warns that proposed reforms to the Mexican judicial system and cuts to government regulators could negatively impact Foreign Direct Investment (FDI) in the country's energy sector. The document, titled Proposed Reforms to Mexico's Judicial System and Regulators Raise Concerns in the Electric Sector, includes interviews with experts and industry leaders.