{"id":50011303,"date":"2018-06-29T14:55:37","date_gmt":"2018-06-29T13:55:37","guid":{"rendered":"https:\/\/stage.dialogochino.net\/?p=11303"},"modified":"2023-01-26T11:19:12","modified_gmt":"2023-01-26T11:19:12","slug":"11303-mexicos-next-president-must-use-energy-reform-to-boost-renewables","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/energy\/11303-mexicos-next-president-must-use-energy-reform-to-boost-renewables\/","title":{"rendered":"Mexico\u2019s next president must use energy reform to boost renewables"},"content":{"rendered":"

It is the stuff of legend in Mexico: In 1938, president L\u00e1zaro C\u00e1rdenas nationalised<\/a> US and Anglo-Dutch oil companies and called on Mexicans to \u201cfurnish the necessary moral and material support\u201d to pay the debt that newly-created Petr\u00f3leos Mexicanos (Pemex) had acquired.<\/p>\n

Thousands of Mexicans, inspired but unsure quite how to support the new venture, queued up outside the presidential palace with donations ranging from chickens to jewellery.<\/p>\n

Eighty years later, as Mexico prepares to elect a new president on Sunday, it is in the process of\u00a0reforming its energy sector<\/a>, opening it up to foreign investment following congress\u2019 approval<\/a> of the Energy Transition Law<\/a> in 2014.<\/p>\n

A new wave of resource nationalism comes as Mexico develops new international partnerships, including with China.<\/p><\/blockquote>\n

As well as choosing a president, the country must also decide whether to use the process, which has attracted billions of dollars in foreign investment, to transition away from fossil fuels towards renewables.<\/p>\n

Meanwhile, the issue of who controls Mexico\u2019s natural resources remains a divisive and emotive one.<\/p>\n

\u201cMy vote will be for whoever makes a public commitment to reverse the constitutional reforms on energy,\u201d prominent politician Cuauht\u00e9moc C\u00e1rdenas, L\u00e1zaro C\u00e1rdenas\u2019 grandson, said<\/a> last month.<\/p>\n

A new wave of resource nationalism comes as Mexico develops new international partnerships<\/a>, including with China. Chinese companies won<\/a> big in both fossil fuel and renewable energy auctions.<\/p>\n

Will the next president of Mexico, a country with a reputation for acting swiftly in the international climate change arena, embrace the opportunity to take Mexico down a more sustainable development path?<\/p>\n

Mixed messages<\/h2>\n

No serious presidential candidate is likely to heed C\u00e1rdenas\u2019 call for re-nationalisation. Even veteran leftist and overwhelming favourite Andr\u00e9s Manuel L\u00f3pez Obrador, known as AMLO, of the National Rejuvenation Movement (MORENA) has pledged<\/a> not to halt the reform.<\/p>\n

AMLO has said there may be a larger role for the state in the oil sector under his watch but no new expropriations.\u00a0 The former mayor of Mexico City and two-time presidential runner-up\u2019s position on climate change is less clear.<\/p>\n

He has pledged to \u201caccelerate the energy transition\u201d but at the same time to \u201crehabilitate<\/a> thermoelectric power plants\u201d.<\/p>\n

\u201cAMLO and the other candidates put environment last,\u201d says Yolanda Tr\u00e1paga, a researcher at Mexico\u2019s National Autonomous University (UNAM), adding that the winner will find an environmentally \u201cdevastated\u201d country as a result of open-pit mining and badly-managed infrastructure projects.<\/p>\n

Tr\u00e1paga suggests that AMLO\u2019s eventual stance on environment will depend on his team. This contrasts with second- and third-placed candidates Ricardo Anaya and Jos\u00e9 Antonio Meade, both of whom approved the energy reform, the latter in his former role as interior minister, she adds.<\/p>\n

David Shields, an energy consultant based in Mexico City, told the Latin America Energy Advisor<\/a>\u00a0<\/em>that\u00a0AMLO\u2019s team has \u201cexciting ideas about getting people involved at the community level in renewable energy projects\u201d. These form part of a more holistic development policy that integrates jobs, health, education and the environment, he said.<\/p>\n

Javier Flores Dur\u00f3n Lizoala, director for North America, Europe and Asia, at Mexico\u2019s energy ministry (SENER), told Di\u00e1logo Chino<\/em> that Mexico already works with international partners to foster the development and deployment of clean technologies. These include Denmark, Germany, France, the US and the UK, and multilateral fora such as NAFTA.<\/p>\n

Mexico also recently signed agreements with China on developing small hydro power through the exchange of information and experts, Flores Dur\u00f3n Lizoala added.<\/p>\n

New China partnerships<\/h2>\n

The energy auction has offered an entry point into Mexico for China, in the wake of strained relations following the cancellation<\/a> of two major projects. Chinese company Jinko Solar won contracts for two solar projects in the states of Jalisco and Yucat\u00e1n, which will generate a combined 170 megawatts.<\/p>\n

Chinese Envision Energy International, in consortium with the Mexican company Vive Energ\u00eda, won the first two auctions and will develop two wind farms in Yucatan.<\/p>\n

Tr\u00e1paga said that buying Chinese technology could assist Mexico\u2019s environmental objectives, which include reaching 35% generation from \u2018clean\u2019 sources by 2030.<\/p>\n

However, she doesn\u2019t believe that the energy reform offers opportunities for China to support sustainable development as long as the country\u2019s vision for development is based on extractive industries and infrastructure building. The country\u2019s \u201cgrow first, protect the environment later\u201d approach is a problem, she says.<\/p>\n

Furthermore, investment in renewables pales in comparison to hydrocarbons, which has attracted around US$150<\/a> billion.<\/p>\n

The opportunity to participate in Mexico\u2019s oil sector for the first time in nearly 80 years brought companies from all over the world, including China National Offshore Oil Corporation (CNOOC), which won two significant blocks in early auctions.<\/p>\n

Tabar\u00e9 A. Curr\u00e1s, honorary member of the Climate Change & Renewable Energy Commission at World Peace Builders, recently told the Latin America Advisor<\/em> that the election is an opportunity to move Mexico in a new direction.<\/p>\n

\u201cMexico\u2019s fossil-based economy must transition faster to a decarbonised energy paradigm, one that would surely bring about positive results to all stakeholders,\u201d he said, adding; \u201ccandidates should not lose the chance to put forward a compelling case for this much-needed transformation.\u201d<\/p>\n

Most parts of the world will generate electricity from wind and solar cheaper than they will from coal by 2023<\/p><\/blockquote>\n

The World Bank Group\u2019s International Finance Corporation (IFC) estimates that Mexico represents a US$75 billion opportunity for renewable energy investors between now and 2030.<\/p>\n

Of all Latin American countries only Brazil has greater potential, according to an IFC report<\/a> on \u201cclimate-smart\u201d investment in the region.<\/p>\n

Renewables prices tumble<\/h2>\n

By the time the next Mexican president completes his 6-year term (Margarita Zavala, the only remaining female candidate, dropped out of the running earlier this month) the way the world generates and stores energy may have changed dramatically.<\/p>\n

Most parts of the world will generate electricity from wind and solar cheaper than they will from coal by 2023, according to a recent report<\/a> by Bloomberg Energy Finance.<\/p>\n

The drop in cost is in part attributable to falling prices for lithium batteries, an increasingly popular method of storing energy, but is also driven by cheaper Chinese manufacturing of renewable technologies.<\/p>\n

\u201cThe economic case for building new coal and gas capacity is crumbling,\u201d Elena Giannakopoulou, head of energy economics at BNEF, told Bloomberg<\/em>.<\/p>\n

According to Lisa Viscidi, director of the energy programme at US think-tank the Inter-American Dialogue, Mexico\u2019s leadership in international climate talks \u2013 it was the first developing country to submit a climate plan to the UN \u2013 is ahead of renewable energy generation.<\/p>\n

Mexico generates less than a quarter of energy from renewables, according to the International Energy Agency<\/a>, well below the Latin America average of 50%.<\/p>\n

However, the reform process\u2019 creation of a wholesale energy market and a system of issuing clean energy certificates is promising for renewables growth, Viscidi told the Advisor<\/em>:<\/p>\n

\u201cEnergy reform has created a strong framework and important incentives to increase renewable energy in Mexico.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Opening the energy sector to foreign investment offers new opportunities and stokes age-old fears<\/p>\n","protected":false},"author":40000225,"featured_media":50022493,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[757],"tags":[17073,580,585],"hashtags":[],"country":[50002597],"class_list":["post-50011303","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-energy-transition","tag-policy","tag-renewables","country-mexico"],"acf":[],"yoast_head":"\nMexico\u2019s next president must use energy reform to boost renewables | Dialogue Earth<\/title>\n<meta name=\"description\" content=\"Opening the energy sector to foreign investment offers new opportunities and stokes age-old fears\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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