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ADVERSE SCENARIO FOR CLEAN ENERGIES IN MEXICO?

The 2030 Agenda for Sustainable Development, as we have mentioned, sets out a series of objectives to generate clear, measurable and quantifiable goals for the good of humanity, and in its seventh objective it proposes to move from the use of fossil fuels to “affordable energy and not pollutant”. Thus, it seeks that governments and companies migrate to the use of sustainable energies, understanding this as the energy produced and used with processes of low environmental impact and that will be available for future generations,
This objective is born from the fact that the global economy continues to depend on fossil fuels -petroleum, natural gas and coal- and the increase in greenhouse gas emissions is affecting the climate system. Our country, by adopting the 2030 Agenda, established a series of guidelines to move towards a low carbon economy, including the Transition Strategy to Promote the Use of Cleaner Technologies and Fuels, which establishes that, by 2024 , 35% of the energy used will come from clean sources.
Despite this, Mexico continues to generate most of the energy from the burning of fossil fuels and, although there are adequate legal instruments to achieve a transition to the use of clean energy, they may not be applied. In this sense, recently, the tender for the transmission line that would transport wind energy produced in the Isthmus of Tehuantepec was canceled. Likewise, the tender for the acquisition of clean energy was canceled, under the argument that its objectives and scope would be reviewed. Subsequently, an emerging order was announced by CFE for coal to Coahuila producers for 360 thousand tons. These actions have generated uncertainty and discontent in the private sector, since the implications can go as far as inhibiting future private sector investments in this industry.
The clean energy industry in Mexico has grown exponentially with the energy reform. For example, the generation of solar energy increased by 190% and the wind generation by 60% after the reform. This growth translates into investments that, in 2019, will amount to 6 thousand 600 million dollars.
This change of direction in the energy policy could not only delay compliance with the 2030 agenda and the goals of the energy transition plan, but also generate uncertainty in private investments within the sustainable energy industry. Such is the case of Iberdrola, a wind energy generation company that plans to invest 5 billion dollars over the next six years, but this investment will depend on the certainty of the new energy planning policy, said Enrique Alba, the company’s director.

Do you need advice to know the trends in the energy sector in Mexico? Write to info@riesgospoliticos.com.mx to provide you with the help your company needs.

Photo by Juan Encalada on Unsplash

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