Mexican government contacted to reboot energy transition

Feb 25, 2021 02:19 PM ET
  • The Global Wind Energy Council (GWEC) and Global Solar Council (GSC) have contacted Mexican lawmakers to prevent modifications to the country's Electricity Act, Ley de la Industria Electrica (LIE), which present what they call "an absolute hazard" to private financial investment in tidy energy.
Mexican government contacted to reboot energy transition
Image: The White House/Wikimedia Commons

The teams issued a joint statement today, reacting to questionable reforms that Mexico's lower home of Congress authorized on Wednesday (24 February). Currently, the Federal Electricity Commission (CFE) needs to buy renewable resource with auctions, yet if the reforms are gone through the upper house, this would certainly no more be required.

Mexico's Head of state Andrés Manuel López Obrador promised to transform power send off rules last August, as part of a recurring altercation with privately-owned clean energy business. In a memo issued to energy regulators, Obrador said the previous political regime's energy reforms helped prop up "personal organizations and corrupt political leaders" as well as had provided "legal grounds for pillage". It likewise declared that state-owned drivers in the country, such as the CFE, have actually been left in ruins as a result of the adjustments.

The renewables trade bodies stated the modification in policy "relegates renewable energy supply in Mexico" and would certainly reverse years of deal with transitioning to tidy energy sources. The International Renewable Energy Agency (IRENA)'s Coalition for Action has likewise authorized the joint statement.

" Offering top priority send off to state-owned energy CFE's plants ... threatens the principle of reasonable competition as well as places Mexico's climate dedications as well as investment environment in jeopardy," it claimed.

The declaration asks Mexico's legislators to reject the proposed modifications to the LIE, highlighting the "damage currently done" to the financial investment possibilities in the country's renewables market. It additionally declares that passing the modifications might set you back 17,000 jobs across the wind and solar field, and also produce a "damaging causal sequence" across industrial as well as commercial sectors currently buying tidy energy.

Gianni Chianetta, chief executive of GSC, claimed that wind and also solar "bring significant advantages to the atmosphere as well as global environment commitments" and also keeps in mind that expenses have actually become very affordable with nonrenewable fuel sources over the last few years.

" The global solar sector contacts the Government of Mexico to urgently adopt policies that favour the change to clean energy sources," she said, "which would profit its people, its economic situation, solar services operating in the country and also the world's climate."

Mexico's current regime stepped up attempts to block renewables companies last year when the power market driver CENACE suspended appointing as well as screening of constructed projects, citing security problems. The renewables field promised lawsuit, and a Mexican court later on approved the sector reprieve in May. A handful of Canadian solar companies went on to send a letter to their own government officials expressing their issue over project hold-ups in the nation. Developer Neon claimed at the time the hold-ups could set you back the firm numerous dollars monthly.