MORENA Appears to Temper Reform ProposalBy Cas Biekmann | Thu, 10/14/2021 - 16:46
Mexico’s Ministry of Energy has stated that distributed generation (DG) systems involving solar panels would not be affected by the electric reform proposal, which continues to be criticized by the private industry. SENER furthermore said that Mexico’s clean energy goals for 2024 are within grasp. In other news, storm Pamela damages the transmission and distribution network. Read this and more in the weekly roundup!
Manuel Rodríguez González, President of the Energy Commission of the Chamber of Deputies and member of ruling party MORENA said that President López Obrador’s reform proposal would not cancel private renewable energy contracts. The provision to do so appeared in the initial proposal, suggesting that the government is toning down its initially rigid and strong-worded proposal.
The electric reform sent to congress on Friday, October 1 has caused much noise in the energy sector. And where there is noise, there are rumors. Minister of Energy Rocío Nahle addressed some of the concerns that had sprung up, assuring the public that distributed generation (DG) would be encouraged, not kicked to the curb.
Mexico’s Ministry of Energy (SENER) asserts that the country will achieve its clean energy goals, set at 35 percent capacity by 2024, considering that 32 percent is already in place. Analysts continue to worry over Mexico’s energy transition amidst controversy caused by President López Obrador’s proposal to reform the sector.
President Deputy Manuel Rodríguez González from MORENA, has explained the commission’s objective is to “help, from the legislative sphere, achieve energy security and sovereignty in a sustainable way.”
The Business Coordinating Council (CCE) estimated that the government’s reform proposal would drive up energy operational costs by US$3 billion a year, since the reform would entail running CFE’s less cost-effective power plants compared to cheap private renewable energy output. CCE furthermore said that US$44 billion in investment would be at risk of becoming irrelevant with the cancellation of permits and contracts.
CFE reported that 213,102 users were affected by Pamela, representing 6 percent of all CFE electricity users in Nayarit, Sinaloa, Durango and Coahuila. As of late October 13, the utility reports it has reestablished 80 percent of the service.
Raloy Lubricantes, a main supplier in the automotive industry selected the mtu Series 500 generator coming from Rolls-Royce’s Power Systems business unit, in order to provide combined heat and power (CHP) for its Mexican power plant.
Winter is approaching and once it gets here demand for natural gas will rise. This time it is not quite business as usual, though, since gas supplies are beginning to look uncommonly precarious. The crunch in Europe and China is worsening, leading experts to warn that the issue could snowball into a global crisis, of which Mexico could feel the effects too.
The Spanish company has received US$5.8 million and is looking to export its technology that helps digitalize solar energy to other parts of the world, including Mexico, reported Forbes.