Will Mexico’s Record-Breaking Solar Prices Pencil Out?

02/08/2018 Greentech Media

Nellis_AFB_Solar_panelsTwo years after a major energy reform effort, Mexico’s auctions are bringing in the lowest solar prices in the world. But getting those projects financed and built will still be a challenge.

Below, we answer the most pressing questions about Mexico’s solar prospects.

GTM is headed to Mexico City next week to discuss how the country can ensure sustainable and healthy solar growth. Our Solar Summit Mexico will address the status of market reform, the economics of record-low bids, financing challenges for big and small projects, currency risk, and the future policy.

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Problems in the pipeline for Sempra’s subsidiary in Mexico

02/07/2018 San Diego Union-Tribune

pipelineAn indigenous group in a small town in Mexico has disrupted a pipeline project operated by a subsidiary of San Diego-based Sempra Energy by taking a chunk out of a natural gas line.

The disruption is one of a number of protests that have caused delays to energy projects in the country.

Four years ago, Mexican political leaders passed energy reform measures in an effort to dramatically improve the country’s power system. Only 7 percent of households in Mexico have access to natural gas.

Mexico will elect a new president in July and the front-runner has been a sharp critic of energy reform.

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NAFTA Talks Called Opportunity to ‘Lock In’ Mexican Energy Reforms, U.S. Gas Trade

09/11/2017 Natural Gas Intel

The North American Free Trade Agreement (NAFTA) renegotiations are an opportunity to update the 1994 treaty so that it reflects changes in Mexico’s oil and natural gas sector and deepened ties to Canada and U.S. energy markets, according to analysts.

“North American energy markets have changed, and there are the new reforms in Mexico,” BDO Mexico’s Rita Mireya Valdivia Hernandez, a partner in the tax practice, told NGI.  “We need to adapt or modify NAFTA so that it is aligned with what North America is today.”

Talks to hammer out the details of a new NAFTA began in mid-August with the first of seven negotiating rounds scheduled through December. Delegates from the United States, Mexico and Canada met again in early September, while the third round is scheduled for Sept. 23-27.

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Protecting Mexico’s Energy Reforms

8/14/2017 RealClear World

By Duncan Wood

When President Salinas Gortari signed the North Atlantic Free Trade Agreement for Mexico in 1992, he provided certainty and stability for investors hoping to benefit from Mexico’s emerging manufacturing base. The trade deal locked in the benefits of domestic economic reforms and liberalization introduced in the late 1980s and early 1990s. The steady flow of foreign investment that followed turned Mexico into a manufacturing powerhouse.

When negotiators from Mexico, Canada, and the United States start talks on Wednesday to renegotiate aspects of the 23-year-old agreement, they too hope to lock in recently won gains in Mexico that are of enormous interest to all parties. One priority must be to defend hard-won reforms in Mexico’s energy sector — reforms meant to change a sector that was closed and monopolistic for 75 years. Since U.S. President Donald Trump’s inauguration in January, a broad-based movement has emerged that aims to defend two decades of free trade in the region and to insist on the urgency of “doing no harm” during renegotiation. NAFTA’s defenders have managed to influence a change in language: Where commentators once spoke of renegotiating a pact Trump characterized as the worst trade deal signed by the United States, the negotiations are now widely framed as an opportunity to modernize a venerable trade deal so that it more accurately reflects the needs and priorities of the 21st century economy.

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After the Storm in U.S.-Mexico Relations

3/31/2017 The Wilson Quarterly

Articles by Duncan Wood, Christopher Wilson, Andrew Selee, Eric L. Olson, Earl Anthony Wayne & Arturo Sarukhan

The relationship between Mexico and the United States is facing its most severe test in decades. Although a new tone and new ideas are needed, the economic, political, and security fundamentals matter more than ever.

Browse the full Winter 2017 issue of Wilson Quarterly here…

Leveraging the U.S.-Mexico Relationship to Strengthen Our Economies, by Christopher Wilson

A New Migration Agenda Between the United States and Mexico, by Andrew Selee

The Merida Initiative and Shared Responsibility in U.S.-Mexico Security Relations, by Eric L. Olson

U.S.-Mexico Energy and Climate Collaboration, by Duncan Wood

Toward a North American Foreign Policy Footprint, by Earl Anthony Wayne & Arturo Sarukhan

 

Will the Next Deepwater Horizon Be in Mexico?

12/7/16 The New York Times

1280px-development-driller-2In Dec. 5, Mexico’s Energy Ministry began auctioning off the crown jewels of its oil reserves, deepwater tracts that, along with those for fracking, are supposed to set off an oil-and-gas rush south of the border. The auctions are a result of a 2013 law that opened the country’s oil and gas industry to private companies, after 75 years of public ownership. What could go wrong?

Plenty, as recent experiences in the United States suggest. Five years ago, Deepwater Horizon familiarized the world with the risks of deepwater drilling, and Americans are increasingly aware of the dangers of hydraulic fracking. In Mexico, the threats from both will be magnified: The state-owned oil company, Petroleros Mexicanos, or Pemex, has long operated with scant environmental oversight, a legacy that will most likely carry over as private-sector operations take over.

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Successful Auction Encourages Mexico to Step Up Oil Opening

12/6/16 The Wall Street Journal

download-3MEXICO CITY—Buoyed by the results of Mexico’s first deep-water oil auction, widely seen as a big success, President Enrique Peña Nieto’s government plans to raise the bet. Mexico intends to hold a second, much bigger deep-water auction around October next year, while state firm Petróleos Mexicanos will likely seek as many as 25 partnerships with private firms over the next two years, Energy Minister Pedro Joaquín Coldwell said in an interview.

“We’re going to be more ambitious, we’ll take a step forward because we now have more experience,” said Mr. Coldwell. “What we’ll very likely see are auctions with many more oil blocks than what we have seen so far.”

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