Regulatory Restructuration Raises ConcernsBy Cas Biekmann | Thu, 01/14/2021 - 17:12
Experts warn about the results of a potential ministerial absorption of CRE and other independent regulators. In other news, Mexico says it could tap into problems regarding barriers to agriculture exports to the US should the country push Mexico in its energy policy.
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Government’s Regulatory Restructuring Under Scrutiny
President López Obrador unveiled his plan to bring several independent regulatory bodies that were created during the enactment of the Energy Reform back into the ministerial fold by dissolving them to reduce what the government considers unnecessary public spending. Since the move would affect CRE directly, private energy players could also feel its effects. Fearing the deterioration of checks and balances in the country, experts lament these plans.
Mexico Could Use US Farm Concerns if Energy Becomes a Stringent USMCA Topic: Reuters
Reuters reported that Mexico could bring up the issue of anti-dumping barriers against its agricultural exports to the US, if Mexico’s criticized energy policy is negotiated with the US, says Minister of Economy Tatiana Clouthier. “It means we keep talking within the framework we signed, the free trade agreement, and negotiating about what bothers both countries,” Clouthier said.
Braskem Idesa Restores Mexican Operations
The Brazilian petrochemical giant Braskem SA instructed Braskmen Idesa, its Mexican arm, to announce the partial restart of polyethylene production under the terms of an experimental business model.
In December, CENAGAS canceled Braksem Idesa’s access to natural gas, which caused the shutdown of Etileno XXI, the largest petrochemical operation in Latin America. The plant uses natural gas for its petrochemical process and it has an ethane cracker that produces 1.05 million tons/year of high and low-density polythene, reported NGI.
Chihuahua Moves Toward Renewable Energy
Jorge López Uranga, Director of Energy of the Ministry of Innovation and Economic Development in Chihuahua, reported that the state currently has 10 photovoltaic parks in operation and that the state government has invested around US$1 billion. Additionally, there are 14 solar and wind projects currently under construction.
New US Energy in 2021 to Be Renewable
GreenTech Media reports that regardless of wind and solar’s current small share in the US´ energy mix, explosive growth is forecast for these renewables in 2021 as they are expected to supply 70 percent of the new power plant capacity. Natural gas is only expected to supply 16 percent of new capacity.
Brazil’s Solar Investment to Surpass US$4 Billion in 2021
Brazilian Solar Photovoltaic Energy Association (ABSOLAR) highlights that the solar sector could create around 147,000 new jobs in the country. New private investment in this sector could also surpass US$4 billion, both in terms of distributed generation and utility-scale projects, BNAmericas reports.