CFE is and will remain Mexico’s leading electricity supplier. Nevertheless, some of the most strategic projects of the former administration such as the fourth long-term electricity auction and the Ixtepec-Yautepec Transmission Line have been cancelled. Uncertainty governs the sector, while the industry awaits further plans. In the meantime, the financial sector advocates for continuity by fostering investment and instruments to tackle volatility.
On a more global outlook, last week global leaders discussed the most pressing issues that threaten global economies at Davos. Climate change was a recurrent topic, as raising temperatures provoke heatwaves in Australia and health problems in China. The electrification of the energy system takes the lead on the agenda, as global oil players such as Saudi Aramco begin to invest in natural gas. Corporate PPAs also govern the renewable side.
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- CFE cancels auction for one of the largest transmission projects in Mexico’s history. The Ixtepec-Yautepec Transmission Line was supposed to transport 3,000MW from the Isthmus of Tehuantepec to the central region of the country.
- Manuel Bartlett announces the creation of an energy intelligence department for CFE. This collaboration will take place with the participation of CFEnergía and CFEinternacional.
- BMV will release an electricity tariff coverage for large industrial users. This instrument will protect consumers from price volatility and fluctuations.
- Mexico’s backbone network contract will be signed in June. Through optic fiber, free internet will be provided to the Mexican territory by using the existent transmission and distribution infrastructure.
- Mexican government analyzes the issuing of a green sovereign bond. The main objective is to send a positive message to investors after the cancellation of NAIM project
- Australia’s heatwave raises fears over the grid’s ability to maintain its reserve generation capacity. The Australian government’s Bureau of Meteorology blames climate change on the heatwave that has continued to break records across the country since November 2018
- Chinese regions lose momentum on the pollution fight. While the country increased its renewable power capacity by 12 percent in 2018, local officials blame the economic downturn.
- Danish wind power company Vestas tailor turbines. The platform will enable costumers to produce cheaper energy based on specific designs for different conditions and location.
- Saudi Aramco plans to invest “billions of dollars” in US gas acquisitions. The world’s top oil producer aims to become a global gas player too.
- Bloomberg, Gap, Cox Enterprises and Salesforce go for distributed generation. An announcement of a jointly-negotiated solar agreement of 42.5MW opens the door for more corporate agreements in 2019.