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News Article

President Outlines State-Centric Energy Policy

By Cas Biekmann | Thu, 08/06/2020 - 15:53

In Mexico, the government’s energy policy is once again at the forefront of weekly events. In other news, a key CFE plant has breached environmental laws. Internationally, BP is looking to lead the green revolution, while Nordex sells a significant pipeline of projects to RWE.

Read all about it in the weekly energy roundup!

 

Mexico

López Obrador Outlines State-Centric Energy Vision, Gears Up to Defend SENER Policy

In a widely discussed memorandum, Mexico’s President Andrés Manuel López Obrador outlines his desire to end the private business-friendly approach of the previous administrations regarding the energy sector in Mexico, as published in a report by Reuters. The report states new oil auctions should therefore be off the table. When it comes to energy production, state-run power plants should be favored. While the President’s office was not available for comments, the document states that existing laws must be respected and that the Mexican regulators have to adapt this policy vision in this regard.

Furthermore, López Obrador has taken two key steps to defend his energy policy: filing two appeals at the Supreme Court, as well as naming a new head for the National Commission for Regulatory Improvement (CONAMER), reported Energía a Debate.

The appeals challenge the suspension against SENER’s Policy on Reliability, Safety, Continuity and Quality for the National Electric System published on May 15.

The president further appoints Alberto Montoya, current Deputy Minister for Energy Planning and Transition at SENER, as the new head of CONAMER, according to sources cited by Expansión and El Financiero.

 

Main Power Plant Breached Environmental Laws: Reuters

The Tula thermoelectric power plant located north of Mexico City has violated environmental laws aiming to prevent dangerous pollution. Reuters assessed this based on non-public documents seen by the press agency.

In not-yet-public documents, CFE, owner and operator of the Tula plant, states the power plant broke the legal limit for sulfur content in the fuel oil used to generate thermoelectric energy. This sulfur content appeared to be around 3.9 percent, which is close to double the limit set by CRE for various industrialized areas. In 2019, the power plant emitted 9,487 tons of PM2.5, particle matters smaller than 2.5 microns that are considered to be dangerous or even deadly pollutants.

 

The Battle to Unlock Hydrogen

According to a report published by GreenTech Media (GTM), the highly coveted potential of green hydrogen is attracting an increasing number of players into the fold. While oil and gas companies such as Shell and BP where among the early adopters, they now face competition from utility companies such as Iberdrola, Uniper and Enel.

 

International

BP Outlines Plan for Asset Green Re-Branding

When the fossil fuel giant outlined its plans to go green last February, Bloomberg News reported that the industry was curious to see if BP could make this significant shift happen. This week, BP CEO Bernard Looney outlined its plans to curb the production of oil and gas, instead investing in renewable energy, hydrogen and charging for electrical vehicles. With the details of the ambitious plans filled in, BP is now lining itself up as a future leader in tackling climate change.

 

Share of Renewable Energy in Spain Reaches 44.7 Percent

So far, Spain has been incorporating a 44.7 percent share of renewable energy in its energy matrix, says grid operator Red Eléctrica de España (REE).

 

Nordex Sells 2.7GW Wind and Solar Project Pipeline to RWE

Nordex, a prolific producer of wind turbines, has sold a significant project pipeline to RWE. The pipeline includes 1.9GW of potential projects in France. Other assets are located in Spain, Sweden and Poland. The companies agreed on a price of US$ 473 million, reported Renewables Now.

The data used in this article was sourced from:  
Renewables Now, Bloomberg News, Reuters
Cas Biekmann Cas Biekmann Journalist and Industry Analyst