Energy Industry Highlights the Importance of Certainty

As 2023 begins, expectations on the development industry regulations grow in intensity. Last year, the stagnation on permits and development for greener energy concerned private investors, but by the end of 2022 some pressure was released on the back of the USMCA energy dispute. However, the industry will have to stay resilient and push toward further regulatory development. At the same time, LNG re-exporting from Mexico sparkles international interest.

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Mexico Needs to Work on Energy Storing Regulation: Enlight

Companies expect the federal government to set the legal framework for both power generation and storing, as the country already has the required technology to store up to 1.5MW of energy. Enlight commented that the federal government should work on a legal framework regarding power generation and storage. According to Willenbrock, since solar energy installations are on the rise, especially under the distributed generation scheme, the creation of clear rules regarding storage is necessary.

LNG Re-Exporting From Mexico Gains Momentum

In December, Sempra announced that its Costa Azul and Vista Pacífico subsidiaries were authorized to re-export US sourced LNG from Mexico to non-USMCA countries. Oneok’s Saguaro Connector Pipeline subsidiary also announced that it plans to build infrastructure to carry exports from the Permian Basin to Mexico. On the back of this news, Sempra, along with developers such as Mexico Pacific Limited LLC, Amigo LNG and other developers, have hinted at strong interest from Asia for the re-exporting projects in Mexico’s West Coast.

Solis To Tackle Energy Network Instabilities in 2023

Ginlong (Solis) Technologies announced the launch of its sixth-generation energy storage inverter with the capacity to correct network instabilities. The high-voltage hybrid inverter for residential energy storage offers a power hub for whole-home backup systems for cost-effective, zero-carbon power in all climatic conditions. The technology is especially important in Latin America where many homes are still not connected to a national energy grid and rely on carbon-fueled generators for electricity.

New Year, New Energy Regulators, Less Clarity

Key figures in Mexico’s energy regulatory bodies stepped down. How this shakeup will affect the agency’s operational effectiveness remains in the air. The Energy Regulatory Commission’s (CRE) Guillermo Pineda Bernal announced that he was stepping down from his post. He was considered to be friendly to the pro-market reforms of 2013-14 made during the Enrique Peña Nieto administration. Similarly, National Hydrocarbons (CNH) Commissioner Alma America Porres Luna ended her six-year tenure, leaving the institution with three commissioners for the second time when it needs at least four to hold sessions or issue ruling and authorizations.

CFE Reports Electric Shortages

CFE reported a shortage of electricity caused by cold front 19 that left the users with no power for between 28 and 72 hours. According to CFE, the affected users represented a total of 3 percent of the population of the three federal entities. CFE deployed 415 workers, 140 vehicles and 76 cranes to work on the repairs.