Wind Energy Investment to Drop 40 Percent in 2022By Cas Biekmann | Thu, 01/20/2022 - 17:57
CFE aims to launch several high-profile natural gas pipeline and supply tenders. In other news, wind investment is expected to drop further in 2022 and open parliamentary discussions surrounding the electricity reform have started.
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Mexico’s state-owned electric utility CFE wants private companies to expand Mexico’s natural gas pipeline infrastructure and to use existing pipeline capacity more efficiently. CFE will launch a tender in two phases for the construction and operation of a gas pipeline aiming to supply Baja California’s power plants and needs a 490 MMcf/d by 2028 to match. Furthermore, CFE aims to construct the long-stalled Guaymas-El Oro pipeline project. Other projects, such a pipeline spanning the Tehuantepec Isthmus will be tendered soon.
Leopoldo Rodríguez, President of the Mexican Wind Energy Association (AMDEE) said that Mexico’s investment in wind energy is poised to drop 40 percent compared to 2021, going from US$1.5 billion down to US$900 million.
CFE will soon start building the Puerto Peñasco Phase I Photovoltaic solar power plant, with a total capacity of 420MW. The first stage of Phase I will consist of 120MW and the second one 300MW. The project aims to construct a total of 1000MW, making it one of the world’s largest solar power plants and a bulwark to the government’s sustainability and energy self-sufficiency goals.
State-owned utility CFE generated most of Mexico’s energy during 2021. Ranked second, the Spanish energy giant Iberdrola stands out equally from the pack, though CFE generated the lion’s share.
Discussions surrounding the López Obrador administration’s prized energy reform have opened in Mexico’s parliament. Featuring profound changes, the reform would drastically alter the status quo set in the constitutional 2014 Energy Reform. With the future of the electricity sector at stake, the battle lines between supporters and detractors are being drawn.
Jayme White, US Deputy Commercial Representative, has highlighted the need for an energy policy in Mexico that promotes fair competition and the production of green energy to fight climate change. These concerns come as the Federal Government continues to favor CFE against the private sector in energy production. US Energy Secretary Jennifer Granholm is due to meet Mexico’s president as well.
The National Autonomous University of Mexico (UNAM) and its Mexican Solarimetric Service say Mexico is one of the countries with the greatest potential in solar energy.
President López Obrador denied a report from Reforma that a group of important Nuevo Leon-based companies such as Soriana and Kimberly Clark will soon suffer blackouts if a major PPA with private power producer Iberdrola were to end. A conflict between the government and the company lies at the heart of the issue. “We have [state utility] CFE, which will sell them electricity at the same price,” the president said.