Mexico impedes the penetration of private renewable energy in the country

In January, Mexico’s National Center of Energy Control (CENACE) issued a command that informs the limitation of renewable energy expansion nationwide. This communication halted the renewable energy projects that were set for resumption in May. A fortnight later, the Energy Secretariat (SENER) released another regulation barring green energy. These strategies by the government are among the latest developments in the country’s energy parastatal, CFE. Stakeholders in the energy industry are all arms up to counter these wrong moves.

Greenpeace Mexico and CEMDA won an interim withholding of the CENACE deal. The Supreme Court of Mexico suspended the Energy Secretariat’s energy agreement after two parties: The Federal Commission for Economic Competition (COFECE) and the state of Tamaulipas lodging complaints against the contract.

The suspension of the two agreements (CENACE and SENER) implies that the clean energy generation plans and testing of the renewable energy power plants will remain on hold until there’s a clarification from the government officials. These energy regulations come amid the reduction in energy consumption country-wide after the implementation of the coronavirus measures. The directives to pause the widespread development of renewable energy plants articulates several energy concepts failures, stating that the halt will prevent putting the citizens’ health in harm’s way.

However, the renewable energy state’s proponents state this energy is even more efficient and secure than fossil fuel terming the stated reasons as null and void. These advocates state that directives are using the pandemic to infringe on the expansion of renewable energy.

Luis Romero, an energy specialist, stated that these directives follow the series of unfortunate events that have bewildered the CFE, forcing the government to intervene indirectly. He added that the government uses parastatals and directives to slow down the growth of the renewable energy industry.

Initially, the Mexican state monopolized the energy industry before the 2014 Energy Reform framework disrupted this impediment. This move created an opportunity for the private sector to intervene and spearhead the energy sector’s growth, especially in the renewables.

Although the legislators are championing the renewables’ expansion, President Andres Manuel Lopez is adamant about revitalizing the Pemex petroleum company’s growth. Legislators argue that the president is using his powers to shield the energy industry from transitioning to renewables while trying to maintain the monopolization of the industry.

Finally, Mexico runs the problem of being listed as a country opposing the Paris agreement’s efforts to minimize global warming through energy regulations. Nevertheless, some companies running renewable energy programs in the country face cases after allegations that they infringe on the citizens’ rights in rural areas.