Energy & Utilities
From The Report: Mexico 2019
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Mexico’s energy and utilities sector has benefitted from increased openness and competition brought about by the 2013 energy reform. Although recent policy changes have sought to limit the involvement of foreign and private firms, there are still significant opportunities for investment, particularly as the national oil company struggles to reduce its debt. Although political risk and uncertainty are likely to deter investors, private firms are still expected to play an important role in assisting smaller local providers. As demand continues to rise, investment in upstream projects is aiming to solve the problem of dwindling crude oil and natural gas resources, and ensure the country possesses enough resources for the future. In addition, despite the new government cancelling clean energy auctions, private developments and deals in the renewables segment are moving forward, with multiple solar energy projects under way. This chapter contains an interview with Tania Ortiz, CEO, IEnova.

Articles from this Chapter

Overview

Shifting focus: New projects to boost capacity continue to move ahead despite uncertainty over the sector’s future
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Since the nationalisation of the oil industry and the establishment of state-run Petróleos Mexicanos (Pemex) in 1938, hydrocarbons production has been a significant driver of growth, and the energy and utilities sector remains a key cornerstone of Mexico’s economy. The sector has evolved rapidly in recent years after a comprehensive energy reform was introduced in December 2013, which has helped to attract private investment in exploration, downstream distribution and renewable energies. Despite…

Interview

Remaining resilient: Tania Ortiz, CEO, IE nova, on generating economic growth through the development of energy infrastructure
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Interview:Tania Ortiz How do you assess the scope for renewable energy in Mexico, and what role can development banks play in developing this segment? TANIA ORTIZ: Mexico possesses a large amount of renewable resources, such as wind and solar energy, giving the country a competitive advantage. Renewables are important in Mexico because they are clean, efficient and can compete with conventional forms of energy on a cost basis. The latter is particularly important as we are a manufacturing…

Analysis

Green leader: The electricity market is being increasingly supplied with clean energy, but transmission issues remain
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Reform has led to new opportunities in Mexico’s energy sector, especially in terms of renewable power generation. The country has launched three auctions for solar and wind projects in recent years, with the first held in early 2016. However, President Andrés Manuel López Obrador – known by his acronym AMLO and who came to office in December 2018 – is not expected to support energy auctions to the private sector during his term. Mexico’s challenge now will be to meet its clean energy ambitions…

Analysis

From here to there: As the natural gas distribution network continues to grow, fuel storage capacity is also set to rise
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In addition to growing the transport network, increasing storage capacity and addressing fuel theft are priorities in the midstream energy segment. To this end, since the 2013 energy reform the government has commissioned work by companies such as Canadian firms TC Energy and ATCO to expand the natural gas network to keep up with rising demand and supply deficits in the south and south-east of the country. Natural Gas Network According to the Ministry of Energy (Secretaría de Energía, SENER),…

Analysis

Capacity boost: The government plans to upgrade the country’s six refineries and construct a new facility
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Since the 2013 energy reform, investors have found a range of opportunities in Mexico’s liberalised downstream energy sector. The new regulatory framework opened up former state-owned petrol stations to private operators and, more recently, has offered services companies the chance to be involved in the programme to upgrade the country’s refineries. Mexico has six refineries: Salamanca, Tula, Nuevo León, Minatitlán, Dos Bocas and Santa Cruz, which are operated by Petróleos Mexicanos (Pemex),…

Overview

Mexico – Cheaper and greener: As costs decline, renewable sources are seeing an inexorable rise, particularly among developing economies
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Although the world remains largely dependent upon fossil fuels for power generation, a gradual transition towards renewable sources has been taking place since the 1990s, underpinned by multilateral deals such as the Kyoto Protocol, the Doha Amendment and, more recently, the Paris Agreement. Investment and development in renewable technologies has historically been led by developed countries, however, in recent years the renewable energy industry has expanded in emerging markets. In 2018 these markets accounted for nearly 70% of new global investment in renewables. Taking the Lead Emerging markets exceeded developed economies in terms of onshore…