Image credits: SENER
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Weekly Roundups

New Publicly Owned Nuclear Project Begins to Materialize

By Cas Biekmann | Thu, 12/09/2021 - 18:18

After defending the government’s proposed electricity reform in Congress, Minister of SENER Rocío Nahle outlined a potential new nuclear energy project. In other news, DG-based solar continues to grow, Siemens Energy opens Mexico City headquarters and Europe’s energy crunch could last well into the future. Read this and more in the weekly roundup!

MEXICO

Electricity Reform Neither Ideological nor Booting Out Private Companies: Nahle

Minister of Energy (SENER) Rocío Nahle told Mexican senators that the government’s far-reaching electricity reform is not based on ideology, but rather aimed at energy security for the Mexican population. Since the reform does not aim to kick out private companies, instead it seeks to create a level playing field, the head of SENER does not expect a wave of litigation citing USMCA-based protection clauses, which the government has analyzed already. Opposition party PAN criticized the reform and filed a formal complaint, stating that the government created high electricity costs but does not diminish subsidies to push the reform. Discussions about the reform will resume in 2022. 

https://www.forbes.com.mx/politica-reforma-electrica-no-es-ideologia-y-no-se-esta-corriendo-a-privados-nahle/

A Government-Backed Nuclear Project Is Materializing

In the same session, Nahle told Congress that the government is feeling positive about constructing a new nuclear energy-based power plant in the country. That could take shape either at the existing 1640MW Laguna Verde power plant in Veracruz, or the less likely option of a new plant in Sonora. After basic engineering, the project could take around 6 to 7 years to materialize. 

https://www.forbes.com.mx/politica-reforma-electrica-no-es-ideologia-y-no-se-esta-corriendo-a-privados-nahle/

Industrial DG Projects Grow Rapidly in Northern Mexico

In the North of Mexico, on-site power production using solar panels is becoming the go-to option for industrial energy users. As a result, business is booming despite lingering uncertainty. For instance, Solar installer Enlight increased its sales 35 percent between 2020-2021, for example.

Electricity Overhaul Hurts Investment, Says European Union

The European Union’s (EU) ambassador to Mexico said that President López Obrador’s initiative to overhaul the electricity sector and place much of the industry’s control back into the state’s hands is a major cause for concern for European governments. In addition, it would curb Mexican investment.

https://mexicobusiness.news/energy/news/electricity-overhaul-hurts-investment-says-european-union?tag=energy

Mexico’s PV Solar Industry Moving Past the Reform Proposal

What previously registered as a regulatory shift is beginning to feel more like a landslide for many private energy companies in Mexico’s energy industry. While private utility-scale endeavors are impaired by uncertainty, the public sector might become a new driver of activity. Similarly, although permitting is becoming a major barrier, distributed generation (DG) could flourish in this new environment.

https://mexicobusiness.news/energy/news/mexicos-pv-solar-industry-moving-past-reform-proposal?tag=energy?tag=energy

Siemens Energy Inaugurates Mexico City Headquarters

Siemens Energy has just opened its new headquarters in Mexico City. The new facility, located in the Antara II Tower called SEnter, supports flexible and remote working and boasts a variety of technology and sustainability features. By applying the latest technology, Siemens will be able to support power producers in Mexico and other Latin American countries efficiently.

https://mexicobusiness.news/energy/news/siemens-energy-inaugurates-mexico-city-headquarters?tag=energy

INTERNATIONAL

Europe’s Energy Crunch Remains Problematic

Energy prices in Europe are reaching record highs, driven up further by freezing weather. The high prices are furthermore carrying over in futures contracts, so the effects of the crunch could remain problematic for much longer.

https://www.bloomberg.com/news/articles/2021-12-08/energy-crunch-sends-benchmark-european-power-prices-to-record

Dominion Energy Carries out Capital Increase

Dominion Energy, the renewable energy arm of Spanish engineering company Global Dominion Access is set to increase its capital so that it can develop projects in Italy, Spain, Portugal, Mexico and the Dominican Republic, among others. The move includes a US$56.6 million investment from Incus Capital in company for a 23.4 stake in return, as well as a contribution of US$28.26 million from the parent company. 

https://renewablesnow.com/news/spains-dominion-energy-agrees-capital-hike-to-fund-over-1-gw-of-renewables-764052/

Photo by:   SENER
Cas Biekmann Cas Biekmann Journalist and Industry Analyst