Government Sets Up Energy Infrastructure Investment BoostBy Cas Biekmann | Thu, 08/20/2020 - 17:44
President Andrés Manuel López Obrador is rearranging government plans to boost energy infrastructure investment. CENACE suggested that renewable energy projects in Baja California Sur are to pay for their interconnection. If not, the project will be put on hold for years. In other news, CFE struggles with a loss of income due to the pandemic and the failing construction of a geothermal plant. Internationally, Trina Solar expands its manufacturing capacity and Enel Green Power sees its Chilean portfolio making great strides.
Read this and more in the weekly energy roundup!
Government Sets up Energy Infrastructure Investment Boost
As a part of its new economic-reactivation initiative, the government is planning to restart the energy infrastructure plan, which had been put on hold since December 2019. The main focus of the initiative is on infrastructure projects, where the energy sector will also participate. “A joint infrastructure construction plan will be presented to promote the construction industry, including the energy sector,” said the president, even though he did not elaborate on any details. Investment is to be spurred by the private sector, with the previous plan considering US$100 billion in investment.
Furthermore, the president set up The National Council for the Promotion of Investment, Employment and Economic Growth to prioritize promotion of the energy sector. The south of the country, where access to energy is still uncertain at times, is to receive a particular focus. Following the reform of the Council, Minister of Energy Rocio Nahle joins its ranks.
Renewables to Pay for Interconnection in Baja California Sur
CENACE has announced it will no longer interconnect renewable energy power plants to the electrical grid without further investments on the private side if they are located in Baja California Sur. This decision is effective until 2027. This case plays a wider role in long-standing issues regarding the role of renewables in Mexico, as well as a historical undersupply of energy in the state.
CFE’s Income Drops During Pandemic, Sees Geothermal Project Stalled
CFE missed out on MX$6.98 billion (US$315.3 million) in income between April and July due to the impact of the COVID-19 pandemic, reported El Financiero. The loss in revenue is because Mexico’s government decided to not reclassify domestic users into higher consumption rates.
In other news, Energía Hoy reported that CFE had halted its work on its geothermal Bosque de la Primavera project in Jalisco. The 50MW powerplant, in which CFE had already invested MX$500 million (US$22.6 million), will be put on hold due to the environmental damage that its construction caused in a protected area during the past years.
Trina Solar Expands Manufacturing Capacity
Prolific photovoltaic panel producer Trina Solar finalized an investment collaboration, aiming to increase manufacturing capacity in its Yancheng plant by 7.6GW. The company plans to increase its export of solar cells by 2.5GW. The increase in production focuses on the company’s Vertex series, solar panels with over 600W capacity, reported Energía Hoy.
Enel Green Power Secures Land Needed to Construct 750MW Solar Projects
Based on a report by Renewables Now, Enel Green Power Chile has been awarded the concessions for land it needs to develop two landmark solar parks in Antofagasta. The two projects will bring a capacity of 750MW combined.