Energy Capacity Will Exceed 118GW in 2024: CENACE

During Puebla Energy Forum 2022, Ricardo Mota Palomino, General Director, National Energy Control Centre (CENACE), stated that by the end of 2024, Mexico’s installed generation capacity will reach 118.55GW, even though demand will be around 50GW.

CENACE pointed out that because of the 2014 Energy Reform, an explosive increase in installed capacity occurred that currently exceeds the national demand. In 2016, the generation capacity stood at 16,468MW. Six years later, at the beginning of 2022, it had risen to 86,882MW, while demand barely reached 50GW. Therefore, Palomino considered that Mexico suffers from an oversupply of power.

"During the two years we spent locked down due to the COVID-19 pandemic, the energy burden decreased slightly. However, the business of producing electricity in private facilities, especially with friends of CRE or other government agencies, grew explosively," Palomino said.

Palomino stressed that the problem lies in private electricity generation being concentrated in certain areas, but not where it is actually required. “Power production is not located where it should be. Urban centers require the most power; We need energy in Monterrey, Baja California and Yucatan, where the load grows rapidly. Instead, we have a large wind power development in the southeast, and further projects in Tamaulipas and the Bajio, where the potential is not fully exploited, " he said.

According to Palomino, CFE owns 49.6 percent of the total capacity of the National Electricity System with 44,717MW, followed by independent power producers, which hold 18.5 percent at 16,689 MW. Currently, 5,632MW are under construction, while another 26,36MW in private power permits are still waiting to be released by CENACE.

The Puebla Energy Forum 2022, held on December 1 & 2, 2022, was organized by the State Energy Agency of Puebla (AEEP) and the local government. The AEEP is a civil association in charge of coordinating, collaborating, and communicating energy-related matters. It brings together representatives of the private, academic and social sectors to promote strategies and develop sustainable energy policies in Puebla.