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How the López Obrador government put clean energy generation at risk

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Photovoltaic and wind energy are the most at risk
Photo: Shutterstock
Photovoltaic and wind energy are the most at risk
Photo: Shutterstock

Last Saturday, an agreement entered into force where the Ministry of Energy (Sener) take full control of the National Electric System (SEN), that is to say, takes command over who, where and how much they can generate energy, which is in contrast to what was decreed in 2014, where the energy reform established an independent market operator that would be in charge of monitoring the above.

As a background, in late April, the National Center for Energy Control (Cenace) published the “Agreement to guarantee the efficiency, quality, reliability, continuity and security of the National Electric System, on the occasion of the recognition of the epidemic of disease caused by the SARS-CoV2 virus (covid-19)”, without subjecting it to public consultation or at the consideration of private industry, and where The entry into operation of new renewable energy plants throughout the country was suspended.

For its part, it has long been known that the President of Mexico and the Secretary of Energy, Rocío Nahle, they insist that CFE generate 54% of electricity and 46% private ones. Contemplating this request and the agreements made in recent weeks, it is rumored that what could be at risk is almost half of the country's electricity generation.

However, it should be clarified that the trade that came into force on Saturday, only affects renewablesthat is, according to the information that Rocío Nahle released yesterday, via Twitter, really only 11.8% of electricity would be at risk, corresponding to photovoltaic energy (generation of energy through solar panels) (4.3%) and wind (generation of electricity through the wind) (7.5%).

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Rocío Nahle, Secretary of Energy Photo: @rocionahle
Rocío Nahle, Secretary of Energy Photo: @rocionahle

It should be noted that the energies corresponding to the Geothermal, Nuclear and Hydroelectric, are not managed by private industry, they are in charge of the CFE.

Consequences of the Cenace Agreement

Despite being a smaller percentage, This represents a series of results that business organizations are already taking into account to act legally. In a technical analysis published this Monday morning by the Institute of Renewable Energies of the UNAM, it is contemplated Several consequences of the delimitation of renewable energy, including:

one. Break the order of rules already established in legal provisions and regulations, without a technical, economic or environmental support that justifies it; taking advantage of the health alarm declaration as a pretext.

2. Having to produce electricity and not being able to do it through clean energy, seeking to inject electricity from fossil sources in contravention of the commitments established by Mexico in the Paris Agreement through Nationally Determined Commitments (NDCs) 17 regarding mandatory reductions in greenhouse gas emissions.

The sulfur produced by Pemex exposes the communities where the thermal plants that consume it to poor air quality.
(Photo: Twitter @Aire_CDMX)

The sulfur produced by Pemex exposes the communities where the thermal plants that consume it to poor air quality.
(Photo: Twitter @Aire_CDMX)

3. By privileging the use of high sulfur fuel oil produced by Pemex, it exposes the communities where the thermal plants that consume it at a poor air quality, to the degradation of ecosystems and the effects of acid rain.

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In addition, given the extra legal irregularities that were carried out for the planning and operation of the SEN, the Confederation of Industrial Chambers of Mexico (Concamin) and the Mexican Confederation of Employers (Coparmex) They have already warned that this agreement violates the legality, legal certainty and free economic competition of the Mexican energy sector, so the matter will go to national and international courts. to demand compliance with established contracts.

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Business organizations warned about shelters that have already started to be reported and which will extend to national and international arbitration instances.

"Again It is a contradictory message that amid the coronavirus pandemic And just when Mexico must generate certainty inside and outside to seek to promote productive investment in such a relevant issue for new generations, it is decided to make a decision that clearly only responds to a closed criterion of the heads of the Secretariat of Energy and the Federal Electricity Commission ”, said Francisco Cervantes Díaz, president of Concamin.

MORE ABOUT THESE THEMES

"If we do not put order, they will continue to see Mexico as a land of conquest": López Obrador defended Sener regulations

Rocío Nahle, head of the Sener, made official the brake on renewable energy investments in Mexico

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Sam Conley is new to online journalism but she is keen to learn. She is an MBA from a reputed university. She brings together relevant news pieces from various industries. She loves to share quick news updates. She is always in search of interesting news so that she can share them as well to Sunriseread's readers who could enjoy them with their morning coffee.

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