The Secretary of Energy of the United States, Jennifer Granholm, openly expressed her government’s concerns about the constitutional reform initiative that is being discussed in Congress to return the monopoly of the entire energy value chain to the Federal Electricity Commission (CFE), giving it a legal minimum of 54% of the country’s electricity generation, canceling contracts from the regime prior to 2013 and removing autonomy from sector regulators.
“In each meeting, we express the real concerns of the Biden-Harris Administration regarding the possible negative impact of the energy reforms proposed by Mexico on US private investment in Mexico,” he said Friday in a statement to inform the conclusions of his tour. around the country on January 20 and 21.
“The proposed reform could also hamper joint efforts by the United States and Mexico on clean energy and climate. We must maintain and improve open and competitive energy markets that benefit North America,” he said.
In her various meetings with senior Mexican leaders, including President Andrés Manuel López Obrador, as well as with the industry, legislators and civil society, the Minister of Energy trusted that they assured her that Mexico is committed to supporting clean energy and solving current disputes with energy projects within the rule of law.
And it is that, according to the projections of the government of the neighboring country to the north, Mexico is blessed with a large amount of potential renewable energy that, if fully realized, could power its own country at least 10 times more, create millions of well-paying jobs and develop a remarkable export industry geared toward a world that needs clean energy.
“We have expressed our enthusiasm to work with the Mexican government to advance its climate goals and grow a competitive and diversified clean energy economy,” said the official, “among other priorities, we want to explore collaboration in the development of geothermal energy , the integration of renewable energies in the network, the reduction of methane and rural electrification”.
Finally, he reiterated that Mexico is its second largest trading partner and US companies are Mexico’s largest investors, so there is a fundamental interest in the Biden-Harris administration that Mexico and its people have a good future.
Prior to Jennifer Granholm’s visit to Mexico, the White House received several letters from legislators, as well as from environmental groups, expressing their concern about the content of the Mexican electricity reform initiative and urging her to assume a more emphatic position against the reform and in favor of the interests of American companies.
The Mexican reform initiative contemplates the cancellation of private electricity generation contracts and permits and limiting electricity generation by private companies to a cap of 46% of the national total.
At the same time, it proposes closing the electricity trading market to private investment, so that private generators could only sell electricity to the CFE, which would be the only company with permission to supply it.
The initiative also proposes the disappearance of the economic dispatch in terms of electricity and one is established that would privilege the generation of the CFE (hydroelectric, nuclear and geothermal, gas, fuel oil, diesel and coal), leaving in the end the private one (mainly gas, solar and wind).
If approved, it would also cause the disappearance of the energy regulators: the Energy Regulatory Commission (CRE) and the National Hydrocarbons Commission (CNH); and the reincorporation of the National Energy Control Center (Cenace) to the CFE.
Due to the foregoing, the CFE would not only be a monopoly company again, but it would also be a monopoly without regulation, in addition to being a judge and party in the electrical dispatch by controlling Cenace, which is in charge of the administration of the electrical dispatch.
Finally, the legislative project proposes the prohibition of the granting of private concessions for the exploitation of lithium, leaving this as an exclusive area for a state company.
karol.garcia@eleconomista.mx