Government Postpones Energy Reform Vote Once Again
Cutting short previous hints of negotiation, Congress announced it postponed the energy reform vote due to a lack of consensus between political forces. Meanwhile, the effects of this potential new energy reform have paused wind energy project development, with estimates showing billion-dollar losses to the Mexican economy. Also, president López Obrador continues its promotion of hydropower generation during his visit to Chiapas. In other news, the Mexican Senate ruled in favor of a cooperation agreement with the US on nuclear energy.
Ready for more? Here is the Week in Energy!
Energy Reform Vote Postponed Again
Congress postponed the vote on President López Obrador’s energy reform to June 2022 due to conflicting views between conflicting political forces. After failing to reach a consensus, deputies of the Constitutional and Energy Commissions requested an extension to rule on the constitutional energy reform. The President of the Political Coordination Board (JUCOPO) and PRI Parliamentary Leader, Rubén Moreira, revealed the decision.
López Obrador Oversees Peñitas’ Modernization
President López Obrador visited Chiapas over the weekend to oversee the modernization of the state’s hydroelectric power plants. The president was accompanied by high-ranking federal government officials, as well as the US Ambassador to Mexico, Ken Salazar. The visit occurred amid the Congressional energy reform discussion, a proposal that relies heavily on hydroelectric power production.
Energy Reform Halts Billions of Dollars in Investments
Investment between US$30 and US$50 billion has stalled in Mexico due to the uncertainty created by the energy reform. The estimate was published by Kroll, a global business risk assessment company.
Senate Approves Agreement for Peaceful Use of Nuclear Energy With the US
The North America, Foreign Affairs and Energy Commissions of the Senate greenlighted the agreement for Cooperation in the Peaceful Uses of Nuclear Energy between Mexico and the US. The two countries signed the agreement back in 2018 and seek to strengthen their cooperation for the sustainable and safe development of nuclear energy, exclusively for peaceful and non-explosive purposes.
Mexico Runs Out of New Wind Energy Projects
The Mexican Wind Energy Association (AMDEE) reported that Mexico has been left without new wind energy projects due to the regulatory uncertainty generated by President López Obrador's constitutional reform efforts. AMDEE revealed that it has no new projects on the radar, though some projects are pending authorization to operate.
Natural Gas Leaders Discuss New Opportunities
Spearheaded by Picarro, Hidden Kitchen and Mexico Business, a unique gathering of leaders in Mexico’s natural gas sector took place in an undisclosed location in Mexico City’s historical center. Attendees discussed the future of the industry, emphasizing pressing issues that included distribution, infrastructure and safety.