Introduction to the Sener’s Invitation for Private Investment
As part of the actions under the Development Plan for the Electric Sector (Pladese) and Plan Mexico, the Secretaría de Energía (Sener) has invited private entities to invest in new renewable energy generation projects, adhering to a binding state planning scheme up to 2030.
Background and Context
The issuance of the invitation marks a significant milestone in the energy policy of the governments under the Fourth Transformation, as few generation permits were granted to private entities during the previous administration.
During Andrés Manuel López Obrador’s presidency, there was a tense atmosphere in the sector due to criticism of alleged chaotic granting of generation permits, particularly for solar and wind energy projects, without considering system reliability or interconnection of the power plants.
The current administration under President Sheinbaum has extended an olive branch to private generators, but with new rules. The authority will only grant permits if the projects align with the binding state planning.
Sener’s Statement and Key Dates
Luz Elena González, head of Sener, explained during a press briefing on the invitation that the binding planning necessitates identifying generation electricity projects that best meet the country’s energy needs in the coming years and determining regions and technologies for these projects to ensure reliability and energy security.
The invitation outlines crucial dates starting from October 20, allowing interested parties to express interest in specific generation projects and submit all required documentation.
The National Energy Commission (CNE) will announce approved permits on December 10, and the list will be made public on December 11. To manage all procedures, the CNE has established the Strategic Energy Sector Projects Single Window (VUPE).
Project Capacity and Investment
According to Pladese, these projects will contribute approximately 6,000 megawatts of capacity, equating to around $7,140 million in investment. Out of this capacity, 3,790 megawatts will be for photovoltaic energy generation, and 2,100 megawatts for wind energy.
Government’s Clean Energy Target
The Mexican government aims to achieve a 38% clean energy participation in consumption by 2030, following the previous administration’s failure to meet its commitment under the Paris Agreement, which was to reach 35% by 2024 (falling short by 13 percentage points).
González emphasized that the invitation presents a challenge for both the state and private companies, with the government committing to timely resolutions and evaluations of permits.
Key Questions and Answers
- What is the purpose of Sener’s invitation? Sener has invited private entities to invest in new renewable energy generation projects, adhering to a binding state planning scheme up to 2030.
- Why is this invitation significant? It marks a milestone in the energy policy of the Fourth Transformation governments, as few generation permits were granted to private entities during the previous administration.
- What are the new rules for granting permits? The authority will only grant permits if the projects align with the binding state planning.
- What is the investment target and project capacity? The projects aim to contribute approximately 6,000 megawatts of capacity, equating to around $7,140 million in investment. Out of this capacity, 3,790 megawatts will be for photovoltaic energy generation, and 2,100 megawatts for wind energy.
- What is the government’s clean energy target? The Mexican government aims to achieve a 38% clean energy participation in consumption by 2030, following the previous administration’s failure to meet its Paris Agreement commitment.
