Mexico, the US and Canada finally agreed on their renewed trade agreement USMCA. While Abel Hibert, Chief Advisor of the Economic Transition team of AMLO, stated that the long-term electricity auctions will continue during AMLO’s administration, the Clean Energies in Mexico 2018-2032 study was presented, gathering the voices of several Mexican energy and sustainability associations. On a global level, Trump aims to boost the development of nuclear energy, GE’s CEO steps down and the UK aims for power-to-gas as an energy storage technology.
-Ready to find energy for the week? Here’s your weekly news roundup:
NAFTA renegotiations ended, changing the trade agreement’s name to USMCA (United States-Mexico-Canada Agreement). After a set of meetings and negotiations that took longer than expected the US, Mexico and Canada reached an agreement, which in the energy side still leave place for uncertainty. According to the Washington Post, big energy companies can challenge Mexico via Chapter 11 if the country decides to change its energy public policy. No further information has been cleared. The entire document in English can be found by here.
Abel Hibert, Chief Advisor of the Economic Transition Team of AMLO, mentioned how both PEMEX farmouts and the long-term electricity auctions will continue in the following six years. He gave no further information about timelines or objectives.
The “Clean Energies in Mexico 2018-2032” study was published by CESPEDES, AMDEE, ASOLMEX and ICLIMA. The study states that it is required to increase solar distributed generation by 16 percent while both utility scale solar and wind have to increase their generation by 6 percent in the following 15 years, for Mexico to comply with its international commitments. During the presentation of the report Juan Pablo Castañón, President of the Business Coordinating Council, mentioned that electricity tariffs for the commercial and small industry for the 1H18 increased 70 percent compared to 1H17 due to CFE turning on more conventional-fuel generation plants, which have increased variable costs for generation by up to 130 percent.
The fourth long-term electricity auction has attracted a total of 396 energy sale offers coming from 34 participants for the pre-qualification round. Meanwhile, six companies have presented purchasing offers. The final pre-qualification list will be published on Oct. 26 by CENACE on its webpage.
Enel closed the sale of 80 percent of the capital share of eight of its SPVs that own 1.8GW of renewables in Mexico to CDPQ and CKD Infraestructura México. The company will continue building the projects under construction and operate the plants under EPC contracts and long-term asset management agreements.
Grupo Bimbo is considering the emission of a green bond. This in the pursuit of reaching its commitment of becoming a 100 percent renewable company as it joined the RE100 initiative last week. For more information on that check our previous weekly roundup.
FIRA will join the green bonds market in Mexico by emitting one for M$2.5 billion. This will become the first instrument to finance greenhouses as well as the first directed to the rural sector.
Naturgy and Fiat Professional signed a MoU to boost innovative projects and expand the usage of natural gas in transportation. This will allow both companies position themselves as leaders in the usage of CNG for transportation in Spain.
Trump signs a bill to boost advanced nuclear reactors in the US. The Nuclear Energy Innovation Capabilities Act eliminates some of the financial and technological barriers standing in the way of nuclear innovation.
ITM Power announced funding from Innovate UK for a feasibility study to deploy a 100MW Power-to-Gas energy storage project. Project Centurion will explore the electrolytic production, pipeline transmission, salt cavern storage and gas grid injection of green hydrogen at an industrial scale. Meanwhile, UK Power Reserve awarded its second phase of a 120MW energy storage portfolio contracts to Fluence. The expanded deal represents one of Europe’s largest battery-based energy storage projects.
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