Mexican Government Moves to Tighten Grip on Electricity Market
In Mexico, the government has moved to seize more control of the electricity market, resulting in consequences for dozens of renewable energy projects worth more than $6 billion amid a significant economic crisis due to the COVID-19 pandemic. Energy companies stated on Friday that Mexico’s new rules for the operation of the power grid heavily favor Mexico’s state-owned electricity utility over private developers. This essentially closes off the power market to foreign investors and allows the Mexican government to exercise more control over the industry.
Canada’s ambassador-designate to Mexico expressed concerns over the measures, claiming that they “jeopardize the operation of renewable energy products of Canadian companies in Mexico.” Meanwhile, the EU stated that the new regulations suspend the startup of renewable power-plants, limiting generation by wind and solar plants. The measures affect 44 renewable projects set to go into commercial operation within the next two years. The rules are representative of the leftist Mexican government’s tension with the private sector.