US, Canada Request Consultations with Mexico under USMCABy María José Goytia | Fri, 07/22/2022 - 09:10
The US government filed its request for consultation under the USMCA against Mexico’s energy policy. Later on, Canada followed the move, marking a united front between north American partners against Mexico’s policy to favor state-owned energy companies. Moreover, COFECE warns about the risks of SENER’s new natural gas transportation and distribution policy which favor CFE and PEMEX. In other news, President López Obrador presented initiatives to export energy to the US.
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The Biden administration plans to request consultations with the Mexican government over energy policies implemented by Lopez Obrador administration. Changes in energy regulation have hurt US companies and put more than US$10 billion in investment at risk. The consultation represents an action that could lead to punitive tariffs on Mexico if attempts to resolve the dispute fail. The request follows several attempts by the US government to convince the Mexican government to change its approach to the energy sector.
Canada said it would be joining the US in starting consultations regarding Mexico's energy policies, amid trade dispute talks over the latter country’s nationalist energy policies. The Canadian government argues that Mexico’s restrictions have undermined international companies investing in clean energy and that they are inconsistent with the USMCA trade agreement.
In its role to protect free competition in Mexico, the Commission for Economic Competition (COFECE) warned about the adverse effects that the strategy of the Ministry of Energy (SENER) will cause in the natural gas market. The government’s plans threaten to increase prices for end users, reduce the natural gas supply and jeopardize Mexico's energy security, according to COFECE. For now, the measure has been suspended in court, though the government said it would appeal this decision.
On July 14, 2022, President López Obrador revealed that during his latest meeting with industry leaders in Washington, he presented different investment projects for the energy sector. The president highlighted his interest in exporting clean energy to the US, on the condition that the Ministry of Energy (SENER) oversees the planning of such projects and CFE recognized as the main investment partner. Furthermore, the developments should fit in Mexico’s energy sovereignty framework.
CFE has attempted to implement new strategies to foster decarbonization and energy efficiency while ensuring a stable energy supply. More recently, CFE has revealed what its approach to fuel switching could look like in the future, with a major focus on green hydrogen. The company announced that it is looking to implement state-of-the-art low-carbon and green hydrogen technology to generate electricity to boost Mexico’s energy transition.
EUPD Research awarded LONGi the Top Brand PV 2022 seal for the Mexican, Chilean and Latin American markets. The Chinese brand received this recognition at Solar Power Mexico 2022 held in Leon, Guanajuato.
CITRUS is launching a solar thermal generation initiative specially adapted for Mexico’s many important industrial processes. This energy alternative is Absolicon's T-160 concentrated solar power technology, certified as the most efficient in the world.