Mexico Called Upon to Respect USMCA Energy CommitmentsBy MBN Staff | Thu, 11/19/2020 - 17:53
The Week in Energy highlights changes in the USMCA region as the US transitions out of the Trump administration. The Canadian Chamber of Commerce asked Mexico to honor its obligations and allow foreign energy players to compete on a level field, while the return of General Cienfuegos to Mexico released tension in the bilateral relation, which may now be focused fruitfully on energy.
This and more in your weekly energy roundup!
Electricity demand will increase in Mexico in the coming years as more electric cars hit the roads. CFE is not prepared for this new demand. The government will have to boost public and private investments.
The Canadian Chamber of Commerce in Mexico (CANCHAM) asked Mexico to be a reliable and serious business partner to attract more investments and benefit from what USMCA has to offer. CANCHAM emphasized the commercial energy sector, which should start focusing on sustainability and efficiency.
The Wall Street Journal wrote that president López Obrador “wants to treat USMCA like a buffet, taking for Mexico what he likes but having none of what he does not.” The President is keen on keeping the northward flow of exports free of tariffs but not so much on liberating Mexico’s energy sector, the publication noted.
El Economista reported that the Donald Trump administration returning General Salvador Cienfuegos to Mexico takes the pressure off the Joe Biden administration in the bilateral relationship with the López Obrador administration. With the Cienfuegos case out of the way, energy policy will be at the center of the bilateral agenda.
Sempra Energy SRE recently announced that its subsidiaries, Sempra LNG and IEnova, have approved a fresh investment worth US$2 billion for construction of Mexico’s ECA LNG Phase 1 project. This is the only liquefied natural gas (LNG) export project globally to reach a final investment decision to date this year.
Bloomberg reported that China’s State Power Investment Corp. is expanding in Latin America’s clean-energy market by acquiring Mexico’s largest independent renewables company, Zuma Energia.
The Mexican Wind Energy Association (AMDEE) and the Mexican Solar Energy Association (ASOLMEX) presented the Renovables X México platform, which aims to promote and publicize the benefits of renewable energy projects across the country.
CRE published its biannual report on Power Plant Interconnection Applications with a capacity of less than 0.5MW for 1H20. The total generation capacity of Small and Medium Scale Interconnection and Distributed Generation contracts increased from 1,031.59MW at the end of 2019 to 1,196.52MW, and a total of 165,528 contracts throughout the country.
The Week in Energy highlights changes in the USMCA region as the US transitions out of the Trump administration. The Canadian Chamber of Commerce asked Mexico to honor its obligations and allow foreign energy players to compete on a level field, while the return of General Cienfuegos to Mexico released tension in the bilateral relation,