Energy Policy Is Hindering Private Investments in Puebla: Barbosa

In March 2020, the government of the state of Puebla announced the creation of the State Energy Agency (AEEP). Through AEEP, the state government planned to attract private investment to develop renewable energy and natural gas projects. However, Miguel Barbosa, Puebla Governor, recently highlighted that the federal government’s energy policy is making it difficult to concrete private investment projects.

AEEP is a decentralized public organism, specialized in the promotion of energy development in the state of Puebla. It has a sustainability and coordination perspective, and promotes the generation and efficient use of energy, as well as private investment and development of projects including those related to energy generation and marketing, storage, transport, distribution and marketing of hydrocarbons, promotion of energy savings and efficient energy use.

By 2020, the agency already had 16 preliminary projects, which represented a potential investment of MX$20 billion (US$1.015 billion). "Energy autonomy is about regulating energy production, not generation. There must be others who generate energy besides PEMEX and CFE," Barbosa said. 

During a virtual conference, Barbosa stressed that Mexico’s current energy policy hinders the arrival of domestic and foreign private investments for energy generation. He stated that state governments have little to do regarding this issue. “We are trying to attract investments in the middle of this complicated situation, but there is not much to do as the federation is the one who authorizes projects,” he pointed out. 

According to Barbosa, due to the imposed barriers, AEEP has been forced to modify its objective and move toward a social vocation. "There are still communities in precarious conditions throughout the country without energy supply networks. Therefore, our administration has chosen to invest in providing energy to marginalized areas and schools through the installation of solar panels," he said. 

Initially, the agency had identified 1.4 million ha in the state ideal for renewable energy production. Of these, 150,000 ha were to be destined to solar energy projects, 620,000 ha to detonate wind farms, 250,000 ha for biomass projects and 120,000 for geothermal ventures.

The state agency is committed to scientific and technological innovation in the energy sector through transversal initiatives that integrate sectors such as energy and electromobility. To support this, AEEP announced a collaboration with Universidad Tecnológica de Puebla (UTP) to design and manufacture an alkaline electrolyser to produce green hydrogen. This project will be supported by Instituto Politécnico Nacional (IPN) and the Mexican Hydrogen Society.