Prices for the third long-term electricity auction are expected to be more realistic, according to representatives from the development banking, energy organizations and industry. This is mainly due to the fact that financing schemes have been worked out for seven of 29 of the projects from the first and second auctions, as well as to the recognition by Marcos Valenzuela, Director of CENACE’s Electric Market Administration, that some projects will not enter an operational phase by the established period, meaning they will receive economic sanctions.
CFE declared that its non-technical losses total MX$40 billion per year. Of this number, 60 percent is due to direct theft and lack of payments. The loss due to theft is even higher than that for PEMEX, which totals MX$20 billion.
Cubico expects to start construction of its wind park El Mezquite, located in Nuevo Leon, in the next two weeks. The project will receive an investment of US$300 million, with US$200 million coming from the North American Development Bank, for an installed capacity of 250MW, according to Osvaldo Rance, Director of Cubico in Mexico. The wind park one of the assigned projects from the second long-term electric auction.
CFEnergía, CFE’s subsidiary that provides energy fuels to the Mexican market, has signed a 24-year natural gas supply contract with Iberdrola for a total value of US$4 billion. The fuel will be supplied for the production of electricity in Iberdrola’s combined cycle plant El Carmen, which will have 866MW of installed capacity and is expected to begin operations in September 2019 with an investment of US$450 million. The electricity produced by the plant will be sold in the Mexican wholesale electricity market.
A major blackout affected Nuevo Leon, Tamaulipas, Chihuahua and Coahuila on Sept. 10 at 17:30, due to a failure in the San Jeronimo station located in Monterrey. By 21:00 of the same day, and thanks to efforts from CFE together with CENACE, 66 percent of the affected population had its power restored.
MGX Minerals, a Canadian company, expects to bring a revolution in the production of lithium. The company is working to use oil extraction wastewater, which contains lithium carbonate, to produce the raw material necessary for the production of lithium-ion batteries.
From Sept. 5-7, the Green Expo took place in Mexico City. The focus of the exhibition was on circular economies. The event gathered more than 100 exhibitors from across the electric and natural gas value chains. Another, even bigger, event is coming soon as DEMEX will take place from Sept. 11-13. DEMEX is an opportunity to discuss, analyze and reflect on the trends guiding the energy scene, as well as to promote dialogue and create synergies between key stakeholders in the sector. This year’s edition will have as guiding axes renewable energies, energy efficiency and innovation.
Jaime Hernández, the new President of the World Energy Council, Mexico Chapter, offered an interview ahead of the World Energy Leader’s Summit. Hernández, who is also Director General of CFE, said that his objectives are to increase the number of members in the chapter and the awareness of its importance, to encourage an open debate to disseminate information and foster knowledge, and to influence decision-making by providing innovative ideas to key leaders. To read the full interview, click here.
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