US study predicts soaring emissions, electricity cost under new reform

Source: Mexico News Daily

Carbon emissions and power generation costs will both increase substantially if President López Obrador’s proposed electricity reform passes Congress, according to a United States government agency.

Sent to Congress at the start of October, the constitutional bill would guarantee 54% of the power market to the state-owned Federal Electricity Commission (CFE).

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Power sector reforms launched in Mexico

10/04/2021

Source: World Nuclear News

In a press conference at Cuernavaca on 1 October, López Obrador said that reforms put to the Chamber of Deputies on 30 September would give CFE its rightful place in the power system. They would effectively undo reforms made in 2014 intended to increase competition.

Obrador said that private companies had been encouraged to enter the Mexican power market at CFE’s expense. He said they had been able to generate power and make money while CFE power plants were required to be idle, and were able to use the national power grid for no cost.

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Mexico Moves Closer to Fuel Controls With AMLO’s Bill Approval

04/14/2021

Source: Bloomberg

Mexican President Andres Manuel Lopez Obrador’s controversial proposal to tighten control over the country’s fuel market has cleared the lower house of congress, another step in his long-sought goal of resuming the state’s energy monopoly.

With 292 lawmakers in favor, 153 opposed, and 11 abstaining, the chamber approved in general terms the president’s proposal to give national oil company Petroleos Mexicanos greater control over the recently liberalized fuel market that lured investments from Royal Dutch Shell PlcBP PlcChevron Corp. and Exxon Mobil Corp. After debate on certain articles, the bill will be taken up by the senate, where the ruling Morena party and its allies have a majority.

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Mexico’s Senate passes divisive bill to strengthen state utility CFE

03/03/2021

Source: Reuters

MEXICO CITY (Reuters) – Mexico’s Senate passed on Tuesday a divisive bill aimed at strengthening state utility CFE that has angered private businesses and could cause disputes with some of the country’s top trade partners.

The bill was approved with 68 votes in favor and 58 against. The lower house had approved the bill on Feb. 23 without changes and President Andres Manuel Lopez Obrador, who had sent it to Congress, must now sign it.

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AMLO insists electricity bill doesn’t violate constitution but a court challenge is likely

03/03/2021

Source: Mexico News Daily

President López Obrador has dismissed suggestions that a law overhauling the country’s electricity market to favour a state-owned utility is unconstitutional, hours after it was passed by the Senate.

“There is nothing in it that violates constitutional rights, nothing, nothing, nothing,” López Obrador told his morning news conference on Wednesday.

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Mexico’s Lower House Passes Nationalist Electricity Bill

02/24/2021

Source: Bloomberg

Mexico’s lower house of congress approved a controversial electricity bill that prioritizes the state utility above private renewable companies in the latest nationalist move for the country’s energy market.

The bill, proposed by President Andres Manuel Lopez Obrador, was approved without any changes in the early morning on Wednesday, with 289 votes in favor, 152 opposed and one abstention. It will now be taken up by the senate, where the ruling Morena party and its allies have a majority.

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Opinion: AMLO’s Plan to Drop Texas Gas

02/21/2021

Source: The Wall Street Journal

Texas Gov. Greg Abbott’s decision last week to ban natural-gas exports to Mexico temporarily was shortsighted and counterproductive for his state.

This isn’t to dismiss the suffering in Texas. But Northern Mexico, which was also in the deep freeze, is the Lone Star State’s largest trading partner and its biggest market for natural-gas exports. Trying to use a state edict to cut off Mexican power generators in a crisis was a public admission that in Texas’s eyes, customers south of the border don’t rate.

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Blackout Politics: AMLO’s Energy Plan Will Backfire

02/17/2021

Source: Americas Quarterly

On Feb. 16, a day after a winter storm-related energy crisis left more than 4 million Mexicans without electricity, President Andrés Manuel López Obrador tried to seize the moment. “What is the lesson in all of this? We must produce,” the president said in one of his daily press briefings.

The president, popularly known as AMLO, went on to blame the country’s dependence on natural gas imports from the U.S. The blackout, he said, was further proof of a need for Mexican energy self-sufficiency.

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Texas freeze leaves millions in northern Mexico without power

02/16/2021

Source: Aljazeera

Freezing weather in the US state of Texas left almost five million people in northern Mexico without power early on Monday, as a shortage of natural gas disrupted electricity production.

Mexico’s government-owned utility, the Federal Electricity Commission (CFE), said on Monday its operations were interrupted as the winter storm in Texas froze natural gas pipelines.

Mexico uses gas to generate about 60 percent of its power, compared with about 40 percent in the United States, and the country built pipelines to take advantage of cheap natural gas from its northern neighbour.

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Mexico was once a climate leader – now it’s betting big on coal

02/15/2021

Source: The Guardian

The men on the midnight shift smoked cigarettes and cracked jokes in the glow of their helmet lights as they prepared to go underground. They were loading safety equipment and coils of pipe onto wheelbarrows, in readiness for a second shift due to start working later that week.

“We’re reactivating the industry,” said Arturo Rivera Wong, who had just taken on 40 more workers at the mine he owns in the scrublands of the border state of Coahuila.

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