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Weekly Roundups

Mexico May Face More Pressure From USMCA

By María José Goytia | Wed, 07/06/2022 - 18:01

Iberdrola achieves the suspension of a multimillion dollar fine in court. Meanwhile, SEDECO presents its energy transition observations for Mexico City. In other news, SEMARNAT denied Audi a permit to build a solar power plant in Puebla.

Ready for more? Here is the Week in Energy!

 

Iberdrola’s Hefty Fine Temporarily Suspended    

Iberdrola was granted a suspension by a Mexican judge regarding a fine that amounts to US$444 million imposed by CRE in May. The Spanish company was fined for incurring in illegal selling of energy under a self-supply permit granted to its power plant of Dulces Nombres, Nuevo Leon. The action of the Mexican judge, granting Iberdrola's appeal, now gives the company the benefit of the doubt while the case advances in court.

 

SEDECO Presents Energy Transition Observations for Mexico City        

On June 30, Mexico City’s Ministry of Economic Development (SEDECO), the German Development Cooperation Agency (GIZ) and Climate Initiative Mexico (ICM) presented a 216-page report titled Observations on the Energy Transition in Mexico City, to promote the energy transition in the capital. The organizations explained that this document is aimed at public and private companies, researchers, scientists and analysts, who will find updated indicators regarding energy use and strategies that the government should implement in its decision-making to carry the energy transition.

 

Cox Energy Receives US$31.45 Million to Support Growth Plan       

In June 2022, the Spanish firm Cox Energy received a €30 million (US$31.45 million) credit line from Barclays Bank Ireland to further expand its solar-based renewable energy portfolio in Latin America. The company revealed that the investment will be used to develop short and long-term projects, as well as to capitalize on further investment opportunities. Cox Energy América is active across the entire solar value chain and currently holds a pipeline project portfolio of 2.2GW across all development stages.

 

CFE and TC Energy Join Forces to Build US$5 Billion Pipeline

Mexican NOC PEMEX and state utility CFE reported the development of four key infrastructure projects requiring an investment of US$12.5 billion. The largest project is to be developed by CFE and the Canada-based TC Energy, which have signed off on a US$5 billion alliance to build a 420km extension to an underwater pipeline in Tuxpan, Veracruz state. The natural gas pipeline will feed a planned liquefaction facility located at the port of Salina Cruz, Oaxaca. The joint venture announcement was done by Manuel Bartlett, Director, CFE, during the inauguration of the Dos Bocas-based Olmeca refinery.

 

SEMARNAT Denies Audi’s Permit to Build Solar Power Plant in Puebla  

SEMARNAT denied the permit requested by the German automaker Audi for the construction of a solar energy plant within the grounds of its plant in Puebla. The governmental institution pointed out that Audi should have presented the Environmental Impact Assessment (EIA) in the regional modality and not in the particular one. The permit may be reprocessed in the future.

 

Legal Opacity Hinders Investments in Energy Sector: US    

The US singled out the Mexican government for exercising a "legal opacity" that hinders investments in the energy industry and called on it to follow the rule of law, without favoring state-owned companies. Laura Sima, Director of the Office of the Department of Energy of the US Embassy in Mexico, delivered the message during her participation in the Energy Panel within the framework of the Binational Meetings between Mexico and the US, organized by COPARMEX.

The data used in this article was sourced from:  
Mexico Business News, Latinus, El Economista
Photo by:   Pixabay
María José Goytia María José Goytia Journalist and Industry Analyst