Upcoming Elections Crucial to Mexico’s Energy Policy DirectionBy Cas Biekmann | Fri, 06/04/2021 - 09:50
The upcoming elections will have a strong influence on Mexico’s energy policy moving forward. In other news, Sempra Energy has entered the Mexican stock exchange, CFE boosts national content while attending the country’s peninsula energy demand and a French oil supermajor goes for a rebrand. Read for more? Here is your weekly Energy Roundup!
Upcoming Midterm Elections Crucial to Mexico’s Energy Policy Direction
Much is at stake at the elections coming up on June 6. Fifteen governorships, 500 Congress memberships and municipal elections are up for grabs. The election also serves as a mandate for Morena, President López Obrador’s ruling political party. It will either continue its efforts to reshape the energy industry drifting away from the 2014 Energy Reform’s increased private participation, all backed by popular support, or change its discourse in the matter. If MORENA and its allies win big, they would have the power to change the constitution and roll back the Energy Reform. Polls suggest that MORENA will retain its lead, but opposition is rising nevertheless.
CFE Pushes National Content in Baja California, Yucatan
In line with President Andres Manuel López Obrador’s economic policy aimed to boost national industry and create jobs, CFE must reach at least 12 percent of national content up to an optimal 25 percent for participants joining a tender for its Priority Investment Projects (PPIs). The combined cycle power plants, important to meet growing energy demand in Mexico’s isolated peninsulas, represent an interesting investment opportunity in an environment where private participation has become increasingly difficult.
US Energy Giant Begins Trading on Mexican Stock Exchange
Sempra Energy began trading on the Mexican Stock Exchange (BMV) after announcing the results of its exchange offer for shares of its Mexican arm, IEnova, of which Sempra already owned 70.2 percent. With the offer completed, Sempra achieved its goal of acquiring over 95 percent of IEnova’s shares.
Engie Aims for Net Zero, Redoubles Gender Equality Efforts
International electric utility leader Engie reported ambitious renewable energy development objectives, which constitute part of its efforts to reach net zero carbon by 2045. Engie has projects like the Tres Mesas III wind farm and the Villa Ahumada Solar Park. Furthermore, Engie reports it has redoubled its efforts to foster gender equality by signing a commitment with UN Women through all its Latin American entities, including Mexico, to follow the 7 Principles for the Empowerment of Women (WEPs).
CFE Transmission Hints at Return of Private Investment Scheme
CFE’s transmission arm plans to develop many projects that aim to meet Mexico’s energy needs. Between 2020-2024 CFE aims to carry out 199 priority projects, 177 stemming from PRODESEN and 22 initiatives not mentioned in the development plan. US$1.2 billion of investment needed is to come from PIDIREGAS, a famous public-private investment structure used often in the past. For Mexico’s private energy sector, these arrangements can offer considerable opportunities.
French Oil Supermajor Total Rebrands as TotalEnergies
During a shareholder meeting on May 28, Total decided to rebrand as TotalEnergies. The name aims to reflect the company’s efforts to reduce its carbon footprint through incorporating more green energy in its portfolio.
China Warns Local Governments Not Reaching Energy Targets
Reuters reported that a Chinese State Planner warned local governments stating that they are not reaching targets set for energy use and efficiency in 2021 if no stricter measures are taken. Two of three local governments failed to reach at least one of these goals during the first quarter. Beijing has set ambitious yearly climate goals, which cannot be reached without involving provincial and regional entities.