In the Headlines
May 28, 2020
Do Mexico’s New Power Sector Rules Favor the State?
Energy Advisor, Inter-American Dialogue
Energy Partner Carlos Ochoa was interviewed for an Energy Advisor article on new rules for the operation of Mexico's power grid. The new rules, which affect renewable energy projects, have conjured significant controversy. Energy companies and local industry groups say they target private developers and favor the state-owned company CFE, while the Mexican government says the rules are necessary to ensure grid efficiency and reliability. Mr. Ochoa summarized the debate and commented on how the new rules will affect projects.
"This new policy will certainly create a major regulatory change that will affect projects currently in development or in financial negotiating stages, particularly for solar and wind power plants," he said. "Projects in the development phase will have to assess whether they are entitled to enter the power market under the law and under treaties, but future projects will, unfortunately, face a more expensive entry to this market. We expect to see projects competing for niche markets as the investment cost increases."
READ: Do Mexico’s New Power Sector Rules Favor the State?
"This new policy will certainly create a major regulatory change that will affect projects currently in development or in financial negotiating stages, particularly for solar and wind power plants," he said. "Projects in the development phase will have to assess whether they are entitled to enter the power market under the law and under treaties, but future projects will, unfortunately, face a more expensive entry to this market. We expect to see projects competing for niche markets as the investment cost increases."
READ: Do Mexico’s New Power Sector Rules Favor the State?