The Week in Energy: Clarity for Investor’s Interest

Mexican policies have ups and downs in relation to renewable energies, while international investors look for a stable business climate to invest all over the world.  

MEXICO

Mexico City’s “Solar City” Project Starts Operation

With an investment of US$186,000, the Mexico City government started its first photovoltaic project in public buildings by installing a solar energy system in the Ministry of Economic Development’s offices  following a distributed generation scheme.

Fadlala Akabani, head of the ministry, explained that the “Solar City” project is part of seven objectives established by the local Environmental and Climate Change Program. In its first stage, 250 photovoltaic panels were installed in two buildings of the ministry, which are expected to save almost US$3,200 in electricity per year. A second stage will consist in installing solar energy systems in 300 of the 3,000 buildings that are used by the Mexico City government.

Carlyle Group Raises Concerns About Investing in Mexico

Carlyle Group, one of the world's largest and most successful investment firms, said investors need more clarity and consistency, as the current state of uncertainty makes them less willing to invest in Mexico. According to Ferris Hussein, the company’s Managing Director for Energy and Power Infrastructure, rule changes and anti-business rhetoric are souring the business agenda. In addition, Carlos Salazar, head of the Business Coordinating Council (CCE), said companies make long-term investment decisions and changing the rules does not help in this process.

BIVA Will Launch Its 'Green' Index

BIVA will launch its sustainability index FTSE4Good BIVA, which will include companies that meet the standards of environmental, social and governance criteria (ESG). BIVA is member of the NASDAQ system and builds its indexes with FTSE Russell, a group that has the FTSE4Good index line, which is internationally recognized for measuring sustainability in London and other international markets. Green financial instruments acceptance is increasing among investors in Mexico. In 2019, Afores invested in 17 green bonds for an amount of over US$484,000.

INTERNATIONAL

Carlyle Group Will Invest US$100 Million in a New Solar Initiative in the US

Carlyle Group and Alchemy Renewable Energy announced a partnership to develop, acquire, finance and operate solar power generation projects in the US. Alchemy Renewable Energy has been involved in the development, construction and operation of more than 850MW in 38 renewable energy projects across eight states.

France’s Efforts Toward Renewable Assets Development

The French government has plans to increase its investment in renewable assets development. It plans to invest US$9.05 billion per year, with a total investment of US$78.7 billion between 2019 and 2028. As part of this renewable’s assets initiative, TOTAL announced that its subsidiary, Total Quadran has signed an agreement with Banque des Territoires to sell 50 percent  of its solar and wind power assets in France.