Mexico will fail to meet its clean energy goals established in the Electrical Industry Law from 2014, according to a new estimate by Mexico’s Federal Commission of Commercial Competency (Cofece).
Firstly, the new paper published by the Commission estimates that Mexico won’t reach a 35% of its electrical mix from renewable sources by 2024. Instead, it will reach only 29,8%, after the energy reform rollbacks pushed by the Andres Manuel Lopez Obrador administration.
In addition, the electrical wholesale market will have a lack of 12 million of clean energy certificates; the paper from which generators can offset their carbon footprint in Mexico.
Consequently, Mexico will fail to meet its obligations acquired by the Paris Climate accord and its national electric law from 2014.
Secondly, in the document the Cofece highlights several issues in the Mexican whole sale electricity market; issues that complicate the entrance of renewable energy. Such as: constant changes in the methodology of calculating tariffs from state owned CFE.
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Clean energy generation impeded in Mexico
Also, a huge delay in electric generation permits; which, since October 2020, account with more than 99 pending permits. Consequently, the Mexican grid hasn’t been updated and solar and wind projects face major complications in getting connected.
The paper also highlights the cancelation of electric bids as a crucial factor for renewable projects decline in Mexico. “Since 2019, the possibility of competing to sell electricity and clean energy certification is cancelled. Consequently, complicating new renewable projects financing,” the paper underlines.
Moreover, the paper does not contemplate the possible consequences of the new bill pushed by Obrador’s administration and the Energy secretariat.
As we reported previously; on early February, Mexican government introduced a fast-track bill that changes the order in which power is placed to the Mexican grid; privates would lag behind, as the bill intends to replace national electricity company CFE as the main provider.
The bill faced opposition from Mexican Supreme Court and it is not approved yet. Still, Cofece considers that such bill will further harm the free commercial competence; and it also would impede generation and commercialization of clean electricity.