Image credits: CFE
/
News Article

French State Companies to Aid CFE in Clean Energy Project

By Antonio Trujillo | Thu, 10/21/2021 - 11:38

The French Development Agency (AFD) will invest EU$200 million in Mexico’s CFE to finance clean and renewable energy projects in the country.

The investment which totals approximately MX$4.7 billion, will be granted in a 25-year plan, in order for CFE to develop clean energy projects. In the same manner, the state company Électricité de France (EDF), will assist CFE with technical support and expertise, as well as in the operational management in the Grijalva basin in Chiapas, in order to improve the safety of dams and define action plans for climate risk management, in addition to studying the possibilities of implementing storage technologies.

With those objectives in mind, CFE has already signed contracts with both organizations. Furthermore, according to a statement released by the Mexican state company led by Manuel Bartlett, the “celebration of these alliances is part of CFE's strategy to strengthen the capacity to generate electricity through clean and stable sources, in order to help reduce greenhouse gas emissions and meet the commitments Mexico has established with different instances at the international level in sustainability matters.”

Other details explained that the agreement with the AFD contemplates, among other projects, the rehabilitation and modernization of various hydroelectric plants that are in operation and whose technology is more than 30 years old, which will allow to “increase the generation of electric power, the useful life of the hydroelectric plants and the security of the infrastructure, minimizing the environmental and social impacts in the regions where they are located.”

Notable guests were invited to the agreement signing ceremony, including the French Ambassador to Mexico, Jean-Pierre Asvazadourian, AFD Director for Latin America Marie Pierre Bourzar, and EDF executive director and vice-president for America, Philippe Castanet.

Ever since its announcement and dispatchment to congress, President López Obrador’s reform initiative has been met with harsh criticism, specifically targeting what they say will “halt the energy transformation” by privileging energy generated by thermoelectric and coal plants owned by CFE over to energy produced in private plants from renewable sources. In that respect, and relating it to the aid received by the French, the president reassured that “investment is already being made in the modernization in 14 CFE hydroelectric plants, where the turbines and other equipment will be replaced.” The president expects electricity generation to double from 9 to 18 percent.

The data used in this article was sourced from:  
Energía a Debate
Photo by:   CFE
Tags:
Antonio Trujillo Antonio Trujillo Junior Journalist & Industry Analyst