Mexico Energy Insights
Perspectives on the energy sector that create value for over 4,000 market participants each month
Reliance on US Natural Gas Poses Risks
April 11, 2019
Over the last 20 years, the Mexican natural gas scenario changed dramatically. During the nineties, a decrease in natural gas prices and ongoing improvements in combined cycle technology resulted in a large substitution of oil power stations by natural gas and combined cycle plants.
Energy Efficiency Solutions in Mexico
March 25, 2019
Our Energy Efficiency Assessments begin with our consultants analyzing historical energy consumption and identifying trends or ways to optimize energy spending. We meet with building/facility staff and management to discuss the strategy of the facility or plant, which allows us to make thorough recommendations on ways to lower the energy footprint.
PPAs vs Wholesale Spot Market
December 05, 2018
A PPA is a long-term contract between parties to purchase a certain amount of energy for future delivery. The agreements are typically between five and 15 years in tenor and are similar to what you would see in the US power market. However, the new PPA structure in Mexico weakens some of the protections that benefited generators in previous PPAs with the state-owned utility, CFE.
Geothermal in Mexico: The Ring of Fire
December 04, 2018
Mexico is committed to expanding geothermal energy as part of its strategies to reach its clean energy targets. Although most geothermal plans are owned by the state’s Federal Electricity Commission (CFE), Mexico has implemented a set of regulations that encourage private developers to participate in the electric market.
Mexico’s Electricity Market
October 10, 2018
The reforms introduced Power Purchase Agreements (PPAs) as one of the main ways to trade energy. A PPA is a mid- or long-term contract to purchase a certain amount of energy to be delivered in the future at a fixed price.
Financing Renewable Energy Projects
August 22, 2018
Mexico has been one of the Latin American countries who has embraced climate change action. For instance, in March 2015, it submitted a climate action plan to the UN Framework Convention on Climate Change (UNFCCC), being the first developing country to do so. As a part of its efforts, Mexico has set policies and laws to increase energy efficiency promote clean energy.
Oil and Gas Conference in Oslo, Norway
July 16, 2018
Mexico Energy Partners was delighted to have co-sponsored this year’s event, in Norway and Scotland, showcasing Mexico’s energy sector opportunities to private investors.
Transmission and Distribution Infrastructure
June 02, 2018
Mexico’s power grid will have to be expanded and modernized to handle the large amount of renewable projects that will need to be connected to the grid. Mexico’s Minister of Energy said that “over the next 15 years the country aims to build almost 25,000km of new power transmission lines, achieving an investment of at least $13.4 billion.”