Spotlight: Natural Gas Investment and Generation PermitsBy Cas Biekmann | Thu, 12/02/2021 - 16:05
CFE announced major investments in natural gas and hydropower, with natural gas infrastructure giant TC Energy suggesting it could take on the US$4 billion investment to gasify Mexico’s south via an offshore pipeline. In other news, Wärtsilä will suply 600MW power plants to CFE and CRE has issued a handful of generation permits. Read this and more in the weekly roundup!
Mexican state-owned electric utility CFE is investing in two significant areas to ensure reliable energy for the country: natural gas storage projects and hydroelectric power production. Investments total US$4.5 billion while CFE hopes to supply Yucatan with natural gas.
Seeing a “a wealth of untapped demand”, TC Energy aims to invest US$1-2 billion in expanding its laterals and interconnections with end users, expand pipelines and removing bottlenecks from existing infrastructure. Now that the government has announced its plans to bring gas to Yucatan, a further US$4 billion investment in offshore pipeline infrastructure looms for the company.
The Energy Regulatory Commission (CRE) has issued three electricity generation permits for private companies for the first time in 2021,all for biomass-fired power plants. The last time CRE issued an energy generation permit was in August 2021, before that in October 2020. CRE’s torpid permitting means many private companies are still waiting for the green light.
Finnish energy technology leader Wärtsilä will supply two sizeable multi-fuel-fired power plants with a combined capacity of 600MW for Mexico’s state-owned utility company CFE. The two contracts are valued at €480 million (US$544.8 million) and will be executed by Wärtsilä on a full engineering, procurement and construction (EPC) basis.
The Ministry of Economic Development (SEDECO) of Mexico City reported that the city saved MX$68,000 (US$3,125) in two months as a result of the implementation of photovoltaic cells in seven markets.
The Political Coordination Board of the Chamber of Deputies agreed general guidelines to analyse the president’s initiative to reform Mexico’s constitutionally anchored electricity law in parliament. A date for this review has not yet been set but could occur as early as January 2022.
The International Energy Agency said Renewables will account for about 95 percent of growth in new global power-generation capacity until the end of 2026 as a result of the global clean energy push. In 2021, countries installed 290GW of mostly solar and wind energy, breaking last year’s record.
Romanacci succeeds Georgios Papadimitriou, having previously spearheaded renewable project execution in Mexico as well as Africa, Asia and Oceania.