Puebla To Promote Renewable Energy Investments

Puebla’s state government said it is once again committed to renewable energy development. The state has attracted more than US$1 billion in investment for the development of renewable power production projects.

Information from the National Chamber of the Transformation Industry’s (CANACINTRA) Energy Committee shows that there are 10 projects identified to generate clean energy for Puebla. Half of the projects will be funded by international investments from Spain, Italy and the US. The remainder of the developments will be carried out with capital from Mexican companies.

The boons of renewable energy investments are also benefiting the state's communities, as they represent a new source of income for land that is no longer suited for agricultural production.

Sergio Zugasti Mattar, President, the Puebla Energy Cluster, indicated that the COVID-19 pandemic momentarily halted clean energy investment plans. These efforts to attract investment had been coordinated by Puebla’s state energy agency, created in 2019. As the reopening began, investment plans remained on pause due to the uncertainty generated by the potential energy reform promoted by President López Obrador. Once the initiative was discarded in Congress, domestic and foreign companies resumed their interest in completing their renewable generation projects.

According to the National Association of Solar Energy (ANES) in the Puebla-Tlaxcala region, the state has a radiation of 5.4Kwh, higher than the national average of 5.2Kw/h and therefore  attractive for companies looking for solar project development.

Puebla's main industries, such as the automotive, textile, agricultural and food sectors, have expressed strong interest in migrating to clean energy consumption, mainly solar energy. "The consumption of renewable energy in the local industrial sector remains rather low, despite the tax benefits that can be obtained. However, we believe that [the industrial] energy consumption can grow in the coming years," said Zugasti.

The investment in clean energy projects during the past six years has brought environmental benefits to the state, too, having reduced more than 500 million tons of carbon dioxide, as Zugasti pointed out.

Among the renewable energy projects completed in Puebla are Iberdrola's 200MW solar plant in the municipality of Cuyoaco, and the 330MW Pachamama II photovoltaic solar park in the municipality of Tepeyahualco, owned by ENR NL.

Puebla is also exploring how to attract investment for the development of green hydrogen in the state. Within the framework of the Month of Puebla in the United States of America, members of the Mexican Embassy to the US and the Ministry of Economy of the Government of Puebla met with executives of the Atlantic Council to explore investment opportunities for global companies regarding green hydrogen, clean energy and other sustainable solutions. Through these efforts, Puebla’s government seeks to consolidate the state's energy transition while promoting economic growth.