Solar Consolidates in Mexico Through DGBy María José Goytia | Thu, 08/25/2022 - 08:52
Distributed Generation (DG) shows an unprecedent growing trend despite the adverse energy policy in Mexico. Meanwhile, Siemens inaugurates its new plant in Queretaro with investment in solar power. Moreover, CFE cuts electricity supply to Cemento Cruz Azul’s plant in Tula.
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DG has seen unprecedented growth in the past years. With Mexico’s energy policy stalling renewable utility-scale developments, the private sector has turned to DG as the alternative to move forward with its decarbonization agenda.
Siemens Energy Mexico revealed the expansion of its factory located in Queretaro through an investment of US$52 million. The upgrade will allow Siemens to increase its production capacity by 28 percent, partially by installing 11,100 solar panels as part of its Social Responsibility and Sustainability strategy.
Climate change and the rising price of fossil fuels are driving interest in new, more affordable and environmentally friendly sources of energy. This context presents an attractive opportunity to promote the development of biofuels as part of energy transition strategies.
Mexico has launched a new natural gas strategy to take advantage of global trends of a growing natural gas demand and increasing prices. The country seeks to consolidate its position as a liquefied natural gas (LNG) export hub using US-imported gas. Nonetheless, Mexico still has several weaknesses in its gas infrastructure that can hinder its goal.
CFE withdrew the electricity supply to the cement plant of Cemento Cruz Azul in Tula, Hidalgo. The power cut has provoked protests against the state-owned company and has intensified tensions within the leading cement company, as CFE points toward an internal conflict as the cause.
Solar thermal energy is advancing in Mexico at an accelerated pace. The country ranks first in installations for the Commercial and Industrial (C&I) segments. Although it is a market with a great dynamism, there is still a huge potential that can detonate investments for at least MX$12.7 billion (US$637.9 million), say experts.