In the Headlines
February 19, 2021

What Will Mexico's CFE Prioritize in the Next Five Years?

Energy Advisor, The Dialogue

Energy attorney Aldo González was interviewed by the The Dialogue's Energy Advisor about the recently published 2021-2025 business plan from the Federal Electric Commission (CFE), Mexico's state-owned utility company. The plan includes an estimated $3.12 billion investment this year to overhaul its generation capacity. Mr. González commented that investing in Mexico's transmission and distribution infrastructure is needed to update aging plants and decrease costs, but he added that the plan probably will not go far enough in strengthening the national grid and modernizing the sector. In addition, he said, recent legislation that aims to bolster the utility company at the expense of private investors raises a number of issues, the costs of which remain to be seen.

"It's uncertain whether CFE will efficiently allocate the investments published in its plan, but it is clear that the federal government will continue to push its regulatory and legislative agenda in order to benefit the utility and displace private producers," he said.

READ: What Will Mexico's CFE Prioritize in the Next Five Years?

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