Although the Executive ordered the month of April 2022 to start with its implementation, the constitutional energy reform It will be discussed this year in Congress through open parliaments between analysts, in the industry and the government, so that with the possible support of the PRI and the rest of its allies, the Moreno administration will once again establish the Federal electricity commission (CFE) as a single mega vertical company, limiting the participation of private and renewables in the sector.
Changes to Articles 25, 27 and 28 of the Magna Carta, with which it will be sought to give the State electric company a 54% preponderance in the generation of electricity in addition to being the sole marketer, distributor and transmitter of this, would jeopardize investments in the sector, executed or in execution , for 44,000 million dollars, not counting the investments of the projected plans, estimates the industry, as expressed by Carlos Salazar Lomelín, president of the Business Coordinating Council.
But in addition, the changes that also seek to return the regulators to the supervision of the Ministry of Energy and the manager of the transmission network, which is the National Center for Energy Control (Cenace) to the CFE they would cause costs of around 85,000 million dollars in potential damages and compensation to private parties, and would affect the macroeconomic outlook of Mexico that would result in the loss of the country’s investment grade, as noted by Citibanamex, in the multiple criticisms about the changes.
Part of the changes is the idea of giving the State the exclusive exploitation of lithium, which will be the fuel of the future for storage in electric batteries, although according to analyst Ramsés Pech, the lithium business is not in the extraction but in the products that come out of the physicochemical reactions, carried out by different processes, and depending on the type of lithium source.
“Currently in Mexico, there is not a mine that is in the exploitation phase, there is only a pilot (studies began in 2010), and the rest is under exploration-evaluation due to certain observed manifestations, in which they must invest to be able to certify the reserves ”, Detailed Pech.
Among the possibilities, it has been established that a state company be formed for the exploitation of this mineral and according to Ramsés Pech, the success of the new company will depend on having its own and independent budget, and being a state company to have access to technology Therefore, it will have to tender publicly, being able to increase the times to put the mine to explode; before the abrupt changes in demand in the litho market, which are expected in the medium to long term, due to the increase in demand for its use of electric car batteries.
Changes to Article 25 Constitutional They include repealing the concept of “productive State companies”, now they are organisms, with an additional paragraph that establishes that the State will preserve energy security and self-sufficiency as a condition to guarantee national security and the human right to a dignified life through access to energy.
The affected
If the initiative that modifies the Constitution is approved and requires that all power generators that will compete among themselves to sell a maximum of 46% of the national generation to the only supplier that will be the CFE, the winners of auctions for the sale of energy would be affected. energy to the state, like the Italian Enel, which has 19 hydroelectric, wind and solar generation plants, with an installed capacity of 3,005 megawatts and others such as Canadian Solar and the korean Kepco, which are among the largest firms in their countries.
Those affected by losing their legacy self-supply contracts from the previous regime, as park operators, which are still 251, include the largest energy producers in the country, such as Acciona, Gamesa and Peñoles. Under the legacy regime of self-supply and cogeneration, companies the size of Audi, Cemex, Alsea, Femsa, Walmart, Model group, Bimbo, Oxxo, Nissan, Nestle, Soriana, Group Salinas, Volkswagen, in addition to reaching a parallel market of almost 70,000 partners.
And among the most affected is the Spanish Iberdrola, with a presence in the country for 20 years and an installed capacity of 8,543 megawatts distributed in 20 combined cycle plants, wind and photovoltaic parks in 15 states. Of this capacity, almost 57% corresponds to that which has been awarded through long-term contracts for exclusive sale to the CFE.
Reference-www.eleconomista.com.mx