Mexico Ranked 33 in Renewable Investment AttractivenessBy Cas Biekmann | Thu, 09/30/2021 - 15:39
A study by EY shows that Mexico has lost much of its appeal regarding renewable energy investments in the past years. In other news, natural gas prices are rising, CRE’s executive secretary steps down and EDF Renewables said a court ruling will not affect its wind project. Read this and more in the roundup!
During the past three years, Mexico has lost much of its potential to pull in investors in clean energy. According to the Renewable Energy Country Attractiveness Index (RECAI) powered by EY, Mexico ranked 33 out of 40 countries as of 2021, having fallen from a previous 7th place.
Miguel Angel Rincon Velazquez resigns from his post as Executive Secretary of the Energy Regulatory Commission (CRE) following allegations of corruption leaked to the media and the authority’s obvious reluctance to issue electricity and oil permits to private energy producers.
Sempra Foundation is donating US$200 million to install five solar projects in Mexican communities, with an estimated 40 families benefiting from these installations. The company is partnering with GRID Alternatives to install the projects on community buildings and other locations.
EDF claims that Oaxaca’s court decision banning the development of energy projects on indigenous communities’ ancestral lands will not affect the ongoing construction of its US$363 million, 252 MW Gunaa Sicarú wind farm in the Isthmus of Tehuantepec.
US natural gas prices have been on the rise in recent months: experts are seeing prices rise to US$6/MMBtu. Mexico, as a net importer, will likely feel the effects too. But it could also profit of the much higher prices elsewhere in the world, part of the country’s push to become an export hub.
Although Mexico has abundant hydroelectric resources, it is also rich in solar and wind resources. For this reason, clean energy can come from diverse sources, said Jacobo Mekler, President of leading association Amexhidro. He believes that the government’s hydropower overhaul plan was feasible, but no more than 5 percent of capacity would be gained.
As coal supplies are dwindling, China has told local authorities and railway companies to share its supply with energy utilities to halt further power cuts. Twenty provinces are already suffering from these cuts, which are also impeding industrial activities.
Steve Douglas, Financial Officer of Hudbay Minerals told Bloomberg that the world needs more mines so that it can produce the copper and battery minerals required by the renewable energy market.