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Mexico Looking to Boost Energy Spending, Include Renewables
Two separate business reports out of Mexico City last week indicated the Mexican federal government may boost energy spending by the equivalent of $2 billion, reaching $10 billion in total this year, and a Green Party bloc in the Mexican Senate has proposed constitutional changes that would allow private sector participation in renewable electric generation projects.
The estimates on energy spending came from Manuel Garcia, the energy secretary on the national board of the Mexican Construction Industry Chamber, citing the total funding for three state-owned firms in oil/gas (Petroleos Mexicanos, or “Pemex”), electricity (Comision Federal de Electricidad, or CFE), and water (Comision Nacional Agua, or CNA). The industrial commission indicated about 90% of the projects would be handled through auctions, for which the federal-owned companies will have the inside track in getting the business.
Some of the work involves drilling in the Gulf of Mexico, for which Pemex does not have a lot of experience with the current technology. However Mexican engineers reportedly are involved in three of the 33 new oil rigs being built in the Gulf, according to Garcia.
The proposal for private sector development of renewable electricity sources is spurred by Mexico’s need to take electricity to the remaining 5% of its territory not covered by its national grid. That includes some 70,000 rural communities, and CFE does not have the budget to address this part of the nation’s energy needs.
Thus, a proposal is being put together to alter two articles in the federal constitution to encourage the development of biomass, wind power, geothermal, tidal power, mini-hydraulic energy and solar projects. Both environmental and distributed generation benefits are being touted by the Green Party leaders.
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