Wind Energy Investment to Drop by 61 Percent in 2021By Cas Biekmann | Thu, 05/20/2021 - 17:12
AMDEE expects wind energy investment to drop steeply in 2021. In other news, CFE finds itself in a legal conflict with Goldman Sachs, USMCA-members voice investments concerns and Iberdrola reports positive Q1 results. Find out more here!
Wind Energy Investment to Drop by 61 Percent in 2021
Data from the Mexican Wind Energy Association (AMDEE) shows that investments in the energy sector will drop by 61 percent in 2021. In 2020, the wind sector expected US$1.3 billion dollars in investments, but in 2021 investment will barely reach US$500 million, reported AMDEE President Leopoldo Rodríguez in a press conference.
CFE Embroiled in US$400 Million Legal Dispute with Goldman Sachs
Traders from Goldman Sachs Group are butting heads with Mexico’s state-owned utility CFE, backed by the country’s president Andres Manuel López Obrador. The issue is rooted in a payment for gas during February’s cold weather conditions, which caused a freeze in Texas and disrupted natural gas imports supply.
Mexico relies strongly on natural gas imports because the fossil fuel feeds the country’s main power plants. CFE was forced to deal with the harsh price hikes during the freeze, reaching almost 100 times the usual daily rate. As a result, Goldman Sachs argues it is owed roughly US$400 million from CFE.
US and Canada Raise Investment Concerns
US and Canada have voiced their concerns regarding the security of investment during the first meeting of the United States-Mexico-Canada Agreement (USMCA) Free Trade Commission on May 17. Mexico furthermore clarified on May 19 that investment, security and supply chains would be discussed on June 8 with US Vice President Kamala Harris and Mexico’s Foreign Minister Marcelo Ebrard.
CEMEX and BP Join Forces to Reach Net Zero Emissions
Construction materials giant CEMEX and British oil and gas supermajor BP have joined forces to achieve CEMEX’s global net zero emissions ambitions by 2050. Although CEMEX headquarters in Mexico, it is present in 50 countries worldwide.
Iberdrola Elevates Renewable Profits in 1Q21
Spanish utility giant Iberdrola reported higher operating profits of 46.9 percent compared to 1Q20, reaching US$709.6 million. The EBITDA of renewable energy increased by 27.8 percent because of higher energy prices in Spain and the US. Renewable business in the US, Brazil and Mexico all posted a net profit, positive news compared to the net loss in 2020.
Grenergy Experiences Net Profit Hit
Spanish renewable energy player Grenergy, which has operations in Mexico, Spain, Chile and Argentina, registered a net profit in 1Q21. Nevertheless, this profit was 89 percent lower than in the same quarter for 2020. The company says its promising pipeline of project developments is expected to yield results soon.