Despite the uncertainty, private players continue to participate in the energy industry in Mexico. Mexico’s energy leaders will meet at the Mexico Energy Forum (MEF) and Solar Summit (MSS) 2023 to discuss trends and strategic foresight for the year in energy. Furthermore, LONGi announced a new technology, opening a new chapter for the world's leading solar technology manufacturer for the mass production of high-efficiency products. Meanwhile, green hydrogen also makes its way to the North American agenda.
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The US announces that it aims to develop a green hydrogen market in North America. The North American clean hydrogen market will include potential cooperation on research and development, safety codes and standards, cross-border hydrogen clusters, green freight corridors and integrated maritime operations. Moreover, PEMEX included the use of green hydrogen in its 2023-2027 business plan.
Despite the challenges, the energy industry stood resilient in the face of major changes in regulation and an ongoing stagnation in bureaucracy. Industry leaders will meet at the Mexico Solar Summit and Mexico Energy Forum 2023 to discuss and forge the foundations of the strategies to be taken to move the industry forward.
LONGi has introduced Hi-MO6, its first module with Hybrid Passivated Back Contact (HPBC) technology designed exclusively for the global distributed consumer market. Hi-MO 6 uses a revolutionary technological design but also employs a back contact one-line welding structure instead of the traditional structure, improving the module's resistance to cracking while delivering a higher level of safety and reliability.
SEMARNAT has conditionally approved the construction of a transmission line for the Puerto Peñasco solar power plant. According to SEMARNAT, the transmission network linked to Puerto Peñasco is environmentally viable, so authorities authorized the project as long as it can meet the conditions set by the ministry. CFE must comply with 16 requirements.
CFE, CEMEX, and Mexico City’s public transport system Metrobus have expressed their interest in the production of green hydrogen to power their operations shortly. CFE launched a trial project in Baja California, to produce green hydrogen. CEMEX also announced that it will implement hydrogen injection technology in four Mexican cement plants as part of its zero-carbon Future in Action program.
The Metro Collective Transport System, CFE and Mexico City’s government inaugurated the power substation called Metro-Energy. According to Claudia Sheinbaum, Mexico City’s Mayor, Metro-Energy is one of the largest and most modern electrical substations in the country. Subway workers will be trained by CFE personnel to attend to the energy supply.
According to Fitch Ratings, different factors continue to discourage investment in the sector. Fitch reports that these factors risk the stability of the commercial relationship between the USMCA countries. Regulatory uncertainty and price increases for fuels are the main factors that continue to foster a negative outlook for the Mexican energy industry.
UNAM discusses the importance of lithium for the energy transition. According to XXX, despite the benefits of using lithium for the energy transition, countries in the global north driving this energy transition are not the same countries possessing lithium deposits. In this regard, President López Obradors plans the creation of LitioMX, a state company in charge of managing lithium exploitation in Mexico. According to López Obrador, foreign investment and cooperation will still be allowed in the value chain.
As part of SENER’s Supply Guarantee strategy for the optimization of capacity in the Integrated National Natural Gas Transportation and Storage System (SISTRANGAS), it drafted rules to force private companies that use SISTRANGAS to acquire gas exclusively from PEMEX and CFE. After the Federal Economic Competition Commission (COFECE) presented a constitutional controversy challenge for unfair competition, the SCJN overruled the SENER instructions. After an appeal was presented, the SCJN’s first chamber voted in favor of the original overrule.
CFE renewed its revolving syndicated credit for US$1.54 billion, 22.2 percent more than the previous credit line from 2018 granted through various banks. The credit was extended by three years with the option to extend it to five years. It also has an adjusted SOFR interest rate plus 115 basis points and was backed by 16 international financial institutions.