Government Reviews USMCA Disputes
The Mexican government will announce a series of measures to address US and Canada’s energy dispute demands. In addition, the Supreme Court is set to revise the amparos requested for the LIE for the second time. Green energy hits the US$1 trillion investment mark for the first time, matching the amount for fossil fuels investments in 2022.
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Buenrostro Highlights Key Points to Address in USMCA Dispute
Minister of Economy Raquel Buenrostro announced that the government is preparing a policy package to address the issues contained in the US-Canada-Mexico Agreement (USMCA) dispute regarding Mexico’s push for more state control in the energy sector. According to Buenrostro, the key to avoiding a USMCA dispute panel, which experts say Mexico would likely lose, is more investment in transmission infrastructure, administrative efficiency and guaranteed interconnection.
Supreme Court Resumes its Revision of Amparos
Mexico’s Supreme Court (SCJN) will once again revise President López Obrador’s reform to the Industrial Electricity Law (LIE) based on requests for legal protection from 18 companies.The requests for protection were originally submitted in 2022 but the SCJN dismissed them. Most of the requested injunctions came from renewable energy companies. Last week, the SCJN announced that it will revise the requested amparos, which sought to settle issues like preferential dispatch for CFE’s energy, the elimination of auctions to contract the supply and modification of CELs.
Green Investment Matches Fossil Fuel Funding for the First Time
For the first time, the global green energy industry hit the US$1 trillion investment mark. According to Bloomberg News, the money that went into the oil industry and fossil fuel-fired power generation reached US$1.1 trillion. At the same time, renewable energy and energy storage, among various other green energy technologies, also reported an investment of US$1.1 trillion
CICLO Will Build an Innovative Refuse-Derived Fuel Plant
The Yucatan-based company CICLO, in alliance with Spontem and Germany’s Alengo, announced the construction of a refuse-derived fuel (RDF) production plant in Merida. The plant, called Pellets CDR, will be the first of its class in Latin America and is expected to begin operations in 1Q24. The project’s goal is to transform waste into pellets that will be then used as biofuel to generate electricity. The investment for the plant stands at MX$3 billion (US$159.65 million).
Valia Energía Acquires EVM’s Asset Portfolio
Valia Energía, a subsidiary of the London-based company Actis, announced the acquisition of EVM’s assets, which feature a portfolio of almost 1GW of installed capacity. The new plants will be added to Valia Energía’s existing assets, which include five power plants with a total capacity of 2.2GW and an adjacent natural gas pipeline, located in the northeast of the country. The company will therefore now own a total of 3.1GW of installed low-carbon energy capacity.