Mexico’s Energy Permit Processing Still at Risk
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Mexico’s Energy Permit Processing Still at Risk

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Perla Velasco By Perla Velasco | Journalist and Industry Analyst - Thu, 03/09/2023 - 08:57

Mexico's energy industry remains highly active, achieving small steps toward decarbonization. Puerto Peñasco's solar plant was inaugurated earlier than expected, and the Development Bank of Latin America (CAF) is lending support to CFE for the development of energy storage systems in Mexico. However, these developments do not yet address issues related to private-sector participation. CRE has released an agreement to resume permit processing but its conditions are worrying to some: according to experts, the new system may create bottlenecks and delay more permit approvals.

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Specialists Warn About the Impact of CRE’s New Agreement

CRE published an agreement to resume the legal deadlines and procedures regarding permit approvals. The new provisions have raised some concerns among energy specialists who have warned about potential delays in approvals. Particular attention has been drawn to the limitations imposed on the number of applications allowed per month, only one application per month may be received per natural or legal person. As per the folios, CRE will only admit a certain amount every month for each energy subsector.

CAF, CFE to Develop Energy Storage

CFE and the Development Bank of Latin America (CAF) signed an agreement to cooperate in the development of energy storage, in addition to a US$200 billion revolving credit line granted to CFE in January. CAF will support the state company with technical assistance, allowing it to develop a technology adoption strategy and construct projects involving energy storage systems.

Sonora Plan: Early Launch of Puerto Peñasco’s Phase One Plant

Originally destined to be launched in April of this year, the first phase of the Peñasco Photovoltaic Park had an early inauguration in February 2023. The initiative has received government funding of US$1.64 billion and will benefit 1.6 million end users in the country.

Batteries Are Essential for the Energy Transition: Eaton

Eaton Mexico will enhance efforts and investments in the use of lithium batteries as part of the energy transition. Moreover, on Feb. 18, 2023, President López Obrador signed a decree to nationalize lithium. However, during a morning conference on March 1, 2023, President López Obrador stated that he is willing to let Tesla participate in the lithium harvesting plan in the northern state of Sonora.

Mexico, US Sign Agreement to Promote the Hydrogen Industry

The Mexican Hydrogen Association (AMH2) and the Fuel Cell and Hydrogen Energy Association (FCHEA) will join forces to promote the deployment of hydrogen as an energy vector in Mexico and the US. The agreement will allow for joint commercial projects, research, and case studies. The focus will be on exchanging best practices for hydrogen and fuel cell regulations and identifying and overcoming technological barriers related to hydrogen production, distribution, storage, and usage.

Natural Gas Imports to Drive Nearshoring Boom

Natural gas prices fell as Mexico increased imports. Mexico’s demand and dependence on gas imports are expected to grow on the back of the growing nearshoring trend. Natural gas is a crucial element for the energy transition, experts have said. Moreover, industries looking to relocate to the country will greatly increase energy demand, therefore Mexico must strategically plan to reinforce its energy system.

Mexico Evalúa Launches Energy Transition Bulletin

México Evalúa launched The Sextant project aimed to observe the energy transition in Mexico. The organization seeks to track public policy processes from legal, regulatory, judicial, economic and social angles, as well as continuously monitor the performance of state-owned and private companies participating in energy markets. 

Natural Gas: Fuel of the Energy Transition

As Mexico has vast untapped natural gas resources, the Mexican Natural Gas Association (AMGN) declared the resource as the fuel for the future, as it can help improve air quality, boost economic growth and promote economic development in the country. However, Mexico’s gas production is not yet up to scratch.

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