Drought could push up Mexican electricity rates - regulator
The head of Mexico's energy regulatory commission (CRE), Guillermo Alcocer, warned the incoming Andrés Manuel López Obrador government that power prices could rise next year if energy generation conditions and the structure of the sector are not modified.
This is especially true if the country suffers a drought in 2019 due to the possible effects of the El Niño weather phenomenon, the official told the senate energy committee, according to a release from the senate.
"The conditions that were experienced this year were extreme. It was a kind of perfect storm, but if we don't change [the structure and conditions of power generation], we're going to run certain risks," Alcocer was quoted as saying.
Alcocer, who was appointed during the administration of Enrique Peña Nieto, asked the new government to define how much public money would be invested in the sector, as well as to remove barriers on private sector development in the industry.
In what could be construed a dig at the heavy emphasis placed on hydroelectric generation by the incoming government, the CRE head noted that Mexico's water supplies are also uncertain.
The possible rate increases clash with previous statements by officials at state electricity utility CFE that the cost of generation in the country would fall by 30% over the next two years as renewables capacity from Mexico's three energy auctions comes online.
High energy prices for small and medium-sized companies have been a driver for the implementation of distributed generation systems in various regions of Mexico.
Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.
News in: Electric Power (Mexico)
Mexico to study potential of radioactive minerals
Geological service SGM plans to carry out 10 studies in 2024 and 2025 in the states of Chihuahua, Coahuila, Durango and Sonora, with a budget of US...
LatAm's oil and gas future: Shale, deep water and the elephant in the room
Carlos Garibaldi, executive secretary of the Association of Oil, Gas and Renewable Energy Companies of Latin America and the Caribbean (Arpel), tel...
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects in: Electric Power (Mexico)
Get critical information about thousands of Electric Power projects in Latin America: what stages they're in, capex, related companies, contacts and more.
- Project: Z. Tla.- Construction of distribution lines and networks of works with and without contribution 2024, in the area of the Tula Zone
- Current stage:
- Updated:
2 weeks ago
- Project: Construction of MV line for New Circuit CAO-04055 in Colonia Zapotal 1ra. Sect., of the Municipality of Comalcalco in the State of Tabasco. PO 374/2023 PEC 114/2023
- Current stage:
- Updated:
2 weeks ago
- Project: Construction of 13.2 KV MV Circuits in SE. Corporal False Bco. 2: 4C-3F-4H-13.2 KV-2.1 KM-750 KCM-AL-XLP, 3/0 CU NC, in Cabo San Lucas, BCS
- Current stage:
- Updated:
2 weeks ago
- Project: Construction of Medium Voltage Circuit CRI-04060 of the Chamula to Bautista El Grande section in the Municipality of Chamula in the State of Chiapas. PO 51/2023 PEC 22/2023.
- Current stage:
- Updated:
2 weeks ago
- Project: Divisional Offices.- León Zone - San Cristóbal Electrical Substation 115 kV RNT
- Current stage:
- Updated:
2 weeks ago
Other companies in: Electric Power (Mexico)
Get critical information about thousands of Electric Power companies in Latin America: their projects, contacts, shareholders, related news and more.
- Company: Voltalia Mexico Renovables
- Company: Soluciones Integradas para Infraestructura Electrica de Potencia S.A. de C.V.  (SIIEP)
-
The Mexican engineering company SIIEP offers design, execution and commissioning solutions for electricity projects, including substations, transmission lines, and wind and sola...
- Company: Acciona Energía México, S. de R.L. de C.V.  (Acciona Energía México)
-
Acciona Energía México is the local subsidiary of Spanish renewable energy operator Acciona's energy division. The company develops wind and photovoltaic projects, offering Engi...
- Company: Avanzia Instalaciones, S.A. de C.V.  (Grupo Avanzia)
-
Avanzia Instalaciones S.A. odeC.V. (Grupo Avanzia) is a Mexican subsidiary of Spanish company Cobra Instalaciones y Servicios S.A. (Grupo Cobra). It is dedicated to construction...
- Company: ICA Fluor, S. de R.L. de C.V.  (ICA Fluor)
-
ICA-Fluor Daniel, S. de R.L. de C.V. (ICA Fluor) is a JV formed in 1993 between Mexican engineering construction group ICA and US-based engineering, procurement, construction an...
- Company: Wind Pro, S. A. P. I. de C. V.