Exclusive: Renewable firms in Mexico must contribute to grid backup


© Reuters. Federal Commission of Electricity (CFE) Director Manuel Bartlett attends a news conference at the National Palace in Mexico City

By David Alire Garcia

MEXICO CITY (Reuters) – Private renewable energy firms in Mexico should pay for part of the baseload power underpinning the flow of electricity on the grid, the head of the state power company said on Friday, as a dispute on the future of the local industry roils the market.

Manuel Bartlett, director of the Comision Federal de Electricidad, or CFE, told Reuters that his company nevertheless favors more clean energy and will seek to further reduce its use of fuel oil as a major source of power generation.

“Wind and photovoltaic (plants) don’t pay the CFE for the backup,” Bartlett said in an interview, referring to the cost of power generation from fossil fuels to ensure a uninterrupted flow to the grid. “And I can’t allow that.”

Last month, Mexico’s power grid regulator CENACE issued a ruling supported by Bartlett that prevented several dozen new renewable energy plants from connecting to the network.

CENACE cited the national crisis over the coronavirus pandemic as a justification, arguing that the intermittent nature of wind and solar power is not consistent with ensuring constant electricity supply.

The decision prompted letters of complaint to the energy ministry by the European Union and Canada, whose governments were upset that their companies had been shut out.

Mexican business associations also criticized the move, saying it puts more than $6 billion in renewable power plants scheduled to begin operating this year or next in limbo.

In a provisional ruling this week, a judge ordered CENACE to back down and allow the renewable firms to continue with tests needed to bring plants online.

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China’s State Grid to resume some tenders, energy projects By Reuters


© Reuters. China’s State Grid to resume some tenders, energy projects

BEIJING (Reuters) – China’s State Grid [STGRD.UL], the world’s single-largest buyer, plans to resume some tenders and building of infrastructure projects, including a power network for the 2020 winter Olympics, it said on Friday.

Most businesses in China are expected to return to work next Monday after an extended holiday for the Lunar New Year ordered by Beijing as it sought to rein in an epidemic that has killed almost 640 and infected nearly 29,000.

“(We) will make all efforts to restart work…and help prompt production resumption of the upstream and downstream companies,” State Grid, which pushed back dozens of post-holiday purchase tenders because of the outbreak, said in a statement.

The company aims to complete 28 purchase tenders for February, worth around 19.642 billion yuan, and issue another 23 tenders to be completed in March.

It will resume construction of five ultra-high voltage (UHV) electricity transmission lines, worth a total of 71.3 billion yuan ($10 billion).

It will also start to build a fifth, from the northwestern province of Shaanxi to the central province of Hubei, and a pumped-hydro energy storage project in the coal mining hub of Shanxi, valued at a combined 26.5 billion yuan, it added.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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