Energy policy-related announcements have increased since AMLO nominated his incoming energy team (to get to know more check out our blog covering AMLO’s nominations and priorities for the energy sector). From CFE’s strong losses and a past-due portfolio to plans on how to make the Productive Enterprise of the State a more social company to also the termination of PEMEX Cogeneración y Servicios and new tariff zones for SISTRANGAS, the country keeps preparing for a new administration. Meanwhile UK aims for more hydrogen applications and GTM Research finds a bottom-low limit for solar bid prices.
-Want to get energized? Here’s your weekly news roundup:
CFE registered its worst financial result during 1H18, reporting a total loss of MX$39.8 billion. This is a 180 degree turn after the company registered a total revenue of MX$35.9 billion during 1H17. It was also reported that by the end of June the company has a past-due portfolio of MX$44.9 billion. Meanwhile Manuel Bartlett, future Director General of CFE, announced that he will not cancel the Energy Reform and that his core objective is to turn CFE back again into a competitive enterprise. Bartlett also mentioned how CFE will go back to basics by fulfilling a social function in the country. Another top priority for Bartlett is to create a social tariff to avoid No-Payment Movements, like the one from Tabasco.
PEMEX decided to close its Cogeneración y Servicios subsidiary due to the low cost-effectiveness obtained since its creation. The subsidiary was created in 2014 to generate, supply and commercialize electricity and thermal energy produced in PEMEX’s electricity and cogeneration plants. Now, these activities will be managed by PEMEX Transformación Industrial.
CRE approved a new nine-tariff zone division for SISTRANGAS, leaving the six previous zones behind. There will be now nine tariff zones, and with that division it is expected to incentivize the development of natural gas production projects.
Acciona Energía México plans to start the construction of a wind farm in Nuevo Leon by Jan. 2019. According to Miguel Alonso, Director General of Acciona, the company is aiming to “grow in the following three years by installing 1GW more of power by the end of 2021.”
JA Solar announced that it will supply 404MW of PV modules to a solar power station. The PV plant is being developed by Acciona in a JV with Tuto Energy and located in Sonora.
UK’s department for Business, Energy and Industrial Safety issued a tender for research services related to the use of hydrogen. The contractors will provide R&D in the area of commercial sector applications and industrial heat generation with hydrogen.
Benban will become during 1H19 the biggest solar park in the world. The project, still under development in Egypt, will have a total installed capacity of 1.8GW and help the country reach its target of a 20 percent renewable energy mix by 2022.
BayWa r.e. completed a US$116 million construction bridge financing for its 174MW Don Rodrigo solar park. The subsidy-free plant will be located in Spain and has a 15-year PPA with Norwegian energy group Statkraft. This is one of the first solar projects of that scale in Europe to be built without subsidies.
According to GTM Research there is a bottom-low limit for solar bid prices. While solar prices have dropped on average 74 percent since 2009 and seven record-breaking bid prices have come in the last two years, Ben Attia, GTM Research solar analyst, found that the magic number is US$14.7/MWh, which could be reached by 2022.
For more articles on Mexico’s energy industry, check out our blog!