Released April 09, 2021 | cordoba, argentina
en
Researched by Industrial Info Resources (Sugar Land, Texas)--In early March, the Mexican Congress approved a reform to the Electricity Industry Law proposed by President Lopez Obrador. The main goal of the reform was to empower state-owned Comision Federal de Electricity (CFE) to recover a majority stake on the electricity market after losing its monopolistic position after 2013's Energy Reform. In this sense, the current reform changed the criteria for the dispatch of electricity to the national system from economic criteria of lower marginal cost to prioritize CFE's hydropower plants, then the rest of CFE's generation plants and finally private-owned renewable and thermal generation plants. The reform also mandates the review and possible cancellation and/or renegotiation of authorization for production and power-purchase agreements (PPA) granted to private producers.
As expected, as soon as the reform was published private producers as well as industry associations, Greenpeace and foreign governments in representation of their national investors in Mexico raised their complaints and started to present legal actions. On March 19, a federal judge ruled a general suspension of the reform while the complaints and actions are resolved, and by March 24, the Secretary of Energy announced it will obey the suspension. According to expert analysts, this suspension will last for several months, but further actions from the president and the congress are expected, and the result of June's legislative elections will be crucial.
Currently, out of an operational installed base of almost 8 -gigawatts (GW) Industrial Info is tracking in Mexico, more than half, 4.6 GW, is owned by CFE through its generation subsidiaries. Nevertheless, CFE participation in the electricity injected in the national system is less than 50%. Click here for a list of operational power units in Mexico.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
As expected, as soon as the reform was published private producers as well as industry associations, Greenpeace and foreign governments in representation of their national investors in Mexico raised their complaints and started to present legal actions. On March 19, a federal judge ruled a general suspension of the reform while the complaints and actions are resolved, and by March 24, the Secretary of Energy announced it will obey the suspension. According to expert analysts, this suspension will last for several months, but further actions from the president and the congress are expected, and the result of June's legislative elections will be crucial.
Currently, out of an operational installed base of almost 8 -gigawatts (GW) Industrial Info is tracking in Mexico, more than half, 4.6 GW, is owned by CFE through its generation subsidiaries. Nevertheless, CFE participation in the electricity injected in the national system is less than 50%. Click here for a list of operational power units in Mexico.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
