SCJN Reiterates Suspension of SENER Energy PolicyBy Cas Biekmann | Thu, 10/22/2020 - 18:14
This week, SCJN backed up the suspension of SENER’s May 15 energy policy. In other news, a new measure will be issued to favor four of CFE’s hydroelectric power plants in the energy dispatch and Iberdrola ponders further investment in Mexico. Internationally, a Biden victory could push Mexico toward bigger renewable energy development.
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SCJN Reiterates Suspension of SENER Energy Policy
The First Chamber of the Supreme Court of Justice of the Nation (SCJN) reiterated the suspension coming from a lawsuit filed by the Federal Commission for Economic Competition (COFECE) on June 22 of this year against the energy policy of the Ministry of Energy aiming to favor CFE’s position in the market, reported El Economista. As a consequence, the effects of the Reliability, Safety, Continuity and Quality Policy on the National Electric System published by SENER on May 15, 2020 have been suspended indefinitely.
President López Obrador responded by saying that he would seek further ways to rescue PEMEX and CFE. “We are going to see if there is another way to defend the public interests. If necessary, I will propose a constitutional reform so the national interest prevails over natural resources. The people’s interest is above personal or group interests, regardless of how legitimate they may be,” he said.
A New Measure to Favor CFE Hydroelectric Dams
The Mexican government announced a new measure that would favor hydroelectric power plants owned and operated by CFE that would give priority for electricity dispatch, reported BNAmericas. The measures to be implemented by grid operator CENACE would also sideline private energy production and therefore potentially widen the rift between public and private sectors, reported BNAmericas. President López Obrador and CFE argue that the measure is necessary to avoid flooding down the Grijalva river, where four hydroelectric dams are located.
Iberdrola Not to Invest Further “If Government Does Not Wish for It”
The Spanish utility giant has stated it will not initiate any further rounds “if the government does not wish for it,” reported Forbes. Iberdrola’s President Ignacio Sánchez Galán mentioned it would hold off investments in Mexico if they are not desired by the government, as the industrious power producer announced its financial results.
Regardless of further large-scale investment, the company will remain an influential player in Mexico for the long run. “Iberdrola’s commitment to Mexico is for the long-term. Our investments are capital-heavy and take time to see returns, which is on par with the country’s energy sector. This is why our business is rooted firmly in Mexico’s development,” Vicente Aparicio, Commercial Director Mexico of Iberdrola, said to MBN.
Could a Biden Victory Push Mexico Toward Renewables?
Based on an analysis by S&P Global Platts, the winner of the upcoming US presidential election could have a major influence on Mexico’s energy policy. If democratic candidate Joe Biden wins the presidency, he could choose to enforce the 2015 Paris Agreement and the energy chapter in USMCA. On the contrary, if Trump remains in power, Mexico will likely continue on the present path it has chosen.
Wind, Solar Often Cheapest Sources of Energy: BNEF
Most places in this world can count on wind and solar energy as the cheapest source of energy generation, according to a recent analysis published by BloombergNEF. The report states that in five years, a new turning point will be reached where it becomes more expensive to operate an existing power plant based on coal or natural gas rather than building a new solar or wind plant.