Guest essay by Eric Worrall
h/t Richard, NoTricksZone – according to Deutsche Welle, the Mexican President is standing firm on his prohibition of all new grid connections to renewable energy plants, a policy shift which was originally reported by WUWT at the start of May.
Mexico stops the energy transition
At the height of the pandemic, Mexico’s government slows down renewable energies and relies on heavy oil power plants. The U-turn startles environmentalists and investors – and also affects German companies.
At the end of March, when Mexico was already in quarantine, President Andrés Manuel López Obrador traveled to Oaxaca. He had his caravan stop in front of bare hills, on the top of which were white turbines from a wind turbine . “These wind turbines mess up the landscape,” he said into the camera. “They produce little energy and are owned by private companies that are subsidized for it. One of the typical scams of the neoliberals.” This was neither populist tapping nor ignorance, but part of a plan that has now been unveiled – and is angry with investors and environmentalists alike.
The now published guidelines of the Ministry of Energy prohibit new connections to plants that generate renewable energies due to alleged “instability in the network”. It is the third regulatory intervention in the electricity market where private providers have been competing with the state-owned company CFE since the 2013 energy reform. At that time, the expansion of renewable energies was outsourced to private providers. The regulatory authority CENACE set the technical framework and was obliged to give preference to the most efficient suppliers when it came to the feed-in. This secured the acceptance for the renewables.
Read more (German): https://www.dw.com/de/mexiko-stoppt-die-energiewende/a-53510746
Translated using a Chrome Browser / Google Translate
I don’t understand why investors are so upset about not being allowed to connect to the grid, about being cut off from government subsidies. Surely they can just use their free energy renewables to produce climate friendly hydrogen by electrolysing seawater, and ship hydrogen straight to consumers, without having to rely on Mexico’s shaky grid infrastructure. Australia’s chief scientist assures us the renewable hydrogen economy is a huge opportunity. Just over the border in California, advocates assure us there is a hydrogen boom.
WTOP accuses the Mexican President of using Coronavirus as an excuse to prop up State owned big oil;
Mexico cites virus in slapping down renewable energy
The Associated Press
May 17, 2020, 4:47 PM
MEXICO CITY (AP) — The Mexican government has cited the coronavirus pandemic as a justification for new rules that will reduce the role of renewable energies like solar and wind power, granting a reprieve to the government’s own ageing, fossil-fuel power plants.
The decree over the weekend has sparked outrage among Mexican and foreign investors who had been allowed to sell their power into the government-operated grid. Industry associations said it will affect 28 solar and wind projects that were ready to go online, and 16 more under construction, with a total of $6.4 billion in investments, much of it from foreign firms.
“This represents a frontal attack on legal security for investments in Mexico, and causes serious consequences for the country, including the loss of jobs and investor confidence,” Mexico’s Business Coordinating Council wrote Sunday. The council cited $30 billion in affected investments, noting “this does not just discriminate against renewable energy, it also allows authorities to artificially inflate the price of electricity in the country and arbitrarily displace any private sector power generation project.”
It is not the first such tussle for President Andrés Manuel López Obrador, a champion of the state-owned oil industry who dislikes renewables and private-sector energy projects. Since taking office in December 2018, he has canceled planned bidding on private oil exploration and forced private firms to renegotiate gas pipeline contracts.
President Andrés Manuel López Obrador is an interesting guy. He has extended free college and government spending, but cut pay for politicians. In 2004 he hired Trump Attorney and former New York Mayor Rudy Giuliani to help solve Mexico City’s crime problem. A big statist but a pragmatist. Maybe kind of an old style socialist, like someone from the time before Anglosphere socialists stopped caring about ordinary people and embraced the green agenda.
via Watts Up With That?
May 23, 2020 at 08:12PM