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Mexico's clean energy drive to accelerate regional development

2023/7/5

Mexico "Financier" recently reported that Mexico is the second largest energy market in Latin America, with abundant solar and wind energy resources, if you can more fully and effectively use clean energy, is expected to promote the country's economic output to increase dozens of times, and drive the region to accelerate the development of clean energy.

At present, Mexico's clean energy generation as a whole is rapidly increasing trend. According to the latest data released by Mexico's National Energy Control Center, between 2017 and 2022, Mexico's power generation will grow by 10.3%, mainly due to the development of clean energy. During this period, clean energy generation increased by 48.4%; fossil fuel generation increased by only 1.1%; traditional thermal power plants saw the largest drop in generation, down 52.2%; coal-fired generation fell by 50.5%; gasoline, diesel and other internal combustion energy generation fell by 20.9%.

In April, Mexican President Lopez reiterated at a meeting of leaders of the Major Economies Energy and Climate Forum that Mexico will fulfill its commitment to achieve 35% of its energy consumption from clean energy in 2024. According to the "Mexico Clean Energy Report" released by the U.S. Department of Energy, if Mexico achieves the goal of 35% of its energy from clean energy, it will reduce the cost of electricity production by $1.1 billion, attract $17 billion in investment and create more than 72,000 direct jobs.

The Mexican government is taking various measures to increase the promotion of clean energy development. Among the goals promulgated or measures implemented include: the renovation of hydroelectric power plant turbines; the development of lithium to achieve the goal of 50% of cars to achieve zero emissions by 2030; construction of photovoltaic power plants and wind parks; expansion of power transmission lines; modernization of oil refineries, including the conversion of fuel oil into low-sulfur emission gasoline; the establishment of a daily limit of 2 million barrels of crude oil extraction. The government is also pushing rail projects to make more use of clean electricity, aiming to achieve nearly half of the southeastern Maya train routes run powered by electricity. At the same time, the rehabilitation of the transoceanic railroad in the Isthmus of Tehuantepec will also significantly reduce the use of internal combustion locomotives in passenger and freight transport, helping the development of clean energy.

The Mexican government is also actively pursuing plans to acquire Spanish energy giant Evel de la Rosa's power plants in Mexico, involving 12 combined gas cycle power plants and one renewable energy plant with a total installed capacity of more than 8 million megawatts. The Mexican government said that the acquisition of the power plants will save 30% of the cost compared to building the plants from scratch. Upon completion of the acquisition, Mexico's Federal Electricity Commission will increase its share of the country's electricity market from 39 percent to 55.5 percent. "This will further strengthen Mexico's electricity production and help secure the population's energy supply and energy price stability. More private sector investment in Mexico's renewable energy development under the guidance of the state is welcome." Mexico's Ministry of Finance and Public Credit noted in a statement.


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