NREL Optimistic About Mexico’s Clean Energy Potential

This week's biggest stories in energy include an NREL report expressing optimism in Mexico’s clean energy potential, CFE’s plan to modernize the CDMX metro, as well as the private sector’s cautious embrace of Congress’ rejection of the government’s proposed energy reform. 

Here's the Week in Energy!

NREL Optimistic About Mexico’s Clean Energy Potential

On April 7, the US Department of Energy’s National Renewable Energy Laboratory (NREL) released an in-depth report about the potential of clean energy development in Mexico. According to the report, Mexico has abundant solar and wind resources and untapped potential to benefit from geothermal and hydroelectric energy. The laboratory, therefore, asserts that Mexico could very well become a clean energy powerhouse, though a seemingly adverse political climate could hamper the country’s development.

CFE Modernizes Mexico City Metro’s Electric System

As part of a coordinated effort to implement energy efficiency solutions in public transportation systems, Mexico City’s government and CFE announced a joint initiative to modernize the power supply system of Metro Lines 1, 2 and 3. The project, called Metro Energía, aims to mitigate the risk of service interruptions caused by power supply failures and reduce electricity costs through the creation of the Buen Tono High-Voltage Substation.

Private Sector Reacts to New Energy Reform’s Defeat

Following the rejection of President López Obrador's new energy reform, Mexico's private sector acknowledged the work done by the parliamentary opposition to prevent the constitutional reform. However, the private sector remains cautious and does not rule out further uncertainty in the electricity sector. The Business Coordinating Council (CCE) acknowledged the responsibility shown by opposition legislators from PRI, PAN, PRD and MC, who stopped the energy reform initiative with their votes. CCE stated that its commitment to contribute to Mexico having sufficient, cheap and clean energy to combat climate change and achieve economic growth remains strong.

YKK to Develop a Solar Power Plant in Guanajuato

Guanajuato’s local government, acting through its Ministry of Sustainable Development (SDES), promoted an initiative by the Japanese company YKK to build a solar power plant and a water treatment plant, as actions to foster local renewable energy generation and sustainable water use.

PEMEX Asked to Stand on Its Own Two Feet

Mexico's debt-laden state oil company PEMEX is facing pressure to resume financial debt repayments despite promises from President Andres Manuel López Obrador that his government would take care of them until at least 2024. On the back of soaring crude oil prices, the Ministry of Finance has called on the NOC to rely on its own resources from this month onward, having pulled capital contributions for April.

France, Mexico and the Renewed Reform War

Mexico is not the only country pushing for energy sovereignty. With the French presidential elections in the rear-view mirror, President Emmanuel Macron is set to back greater state control over the energy sector during his second term in office, in accordance with promises made on the campaign trail. Though the countries exist in vastly different environments, parallels between their energy strategies can be drawn.