Mexico power watch: CRE session, Plan Sonora meeting

Mexico's energy regulator CRE has rejected a new batch of power generation-related permits in its first session of 2023.

The regulator resumed its activities after its head Leopoldo Melchi was reelected in mid-January by denying a generation permit requested by Santo Domingo Solar and five requests to modify existing cogeneration and self-supply permits to change the terms of the energy supply.

In the electric power segment, the watchdog also approved requests by CFE Generación I and NP Energía La Lucha, owner of the 130MW La Lucha solar park in Durango state, to modify some generation permit conditions. CFE's permit relates to the operation of the 292MW Zimapán hydroelectric plant (also known as Fernando Hiriart Balderrama) straddling Hidalgo and Querétaro states.

The commission also authorized Eólica Huimilpan, owner of the 30MW San Pedro wind farm in Querétaro state, to amend the terms of a self-supply permit, including plans to expand the project.

Beyond specific projects, the commission also said it would expand the total capacity of distributed generation plants that can connect to the distribution grid in Baja California Sur state. It also approved the system's basic supply prices for February.

In hydrocarbons, CRE gave the green light to several permits, including for gas decompression and transport, but denied five LPG sales permit requests for vehicle use and approved two. It also approved 17 new gas station permits, continuing its recent trend of clearing its large backlog in this area.

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Foreign affairs ministry Marcelo Ebrard said that US authorities will visit the US$1bn Puerto Peñasco solar park in Sonora state this week, opening the door to further talks about the Plan Sonora clean energy project.

The plan involves the construction of five solar parks in the region, as well as spurring the production of lithium, batteries and electric vehicles. Part of the clean energy produced will be supplied to semiconductor producers across the US border in Arizona.

Ebrard recently committed Mexico to double its current renewables generation installed capacity, drawing skepticism from many market observers given Mexico's recent hostility towards wind and solar growth.