Background on Andrés Manuel López Obrador (AMLO)
Andrés Manuel López Obrador, popularly known as AMLO, served as the President of Mexico from 2018 to 2024. His administration is notable for various reasons, including the significant increase in water concessions during his six-year term.
Water Concession Data Analysis
According to the First Report of Government by President Claudia Sheinbaum Pardo, the volume of national water concessions reached unprecedented levels during AMLO’s presidency, surpassing previous administrations.
- From 2019 to 2024, the volume of concessioned national waters (including surface and groundwater) amounted to 48,193.90 million cubic meters (Mm³).
- This volume is higher than the 31,776.90 Mm³ concessioned during Vicente Fox Quesada’s term, representing a 51.66% increase.
- Compared to Enrique Peña Nieto’s administration (2013-2018), the difference is 78.59%, as the latter saw a total of 26,985.50 Mm³ concessioned.
- The difference is even more significant when compared to Felipe Calderón Hinojosa’s term (2007-2012), with 18,088.4 Mm³ concessioned, a 166.4% difference.
The data from AMLO’s government shows that 2023 had the highest volume of concessions since 2001, with the first year (2019) recording 1,593.50 Mm³ and steadily increasing to 24,124.3 Mm³ in 2023.
Beneficiaries of Water Concessions
Among the top 20 concessions with the highest volume granted in 2023, state-owned companies like Comisión Federal de Electricidad (CFE) and Petróleos Mexicanos (Pemex) were prominent.
- CFE’s Generation I held the concession with the largest volume (12,688.9 Mm³).
- Pemex Transformación Industrial E.P.S had a concession with an extraction volume of 47.3 Mm³.
- Out of the 16 concessions granted in 2023, 10 were to CFE (totaling 22,894.9 Mm³) and six to Pemex (totaling 208,585,044.8 Mm³).
- Combined, these 16 concessions account for 95.7% of the total volume granted in 2023 (24,124.3 Mm³).
Importance of Water in Energy Industry Processes
Experts explain that water is crucial in energy industry processes, serving as coolant, mixer, condition improver, or solvent.
- In refining, water is used for cooling towers and to facilitate certain processes requiring combustibles.
- For electricity generation, water aids turbines, maintains cooling or generates steam.
The 78.6% increase in cubic meters concessioned during AMLO’s administration compared to Peña Nieto’s can be attributed to the rise in thermoelectric plant installations, which heavily rely on water for their processes.
Water Concessions and Energy Policy
The previous energy policy might have played a role in the increased water concessions, as the CFE modernized its hydroelectric plants during this period.
- Projects like Zimapán (Hidalgo), Santa María (Sinaloa), Picachos and Amata (Sinaloa), Mazatepec (Puebla), Peñitas (Chiapas), Angostura (Chiapas), Chicoasén II (Chiapas), and Malpaso (Chiapas) were either inaugurated or are set to be completed by 2027.
Despite half of the country experiencing hydrological stress, water concessions to energy generation companies are not expected to impact water availability in certain regions, especially the northern parts of Mexico.
- Energy generation and petrochemical transformation account for less than 10% of water usage, while agriculture and inefficient water use in urban areas are more significant concerns.
Key Questions and Answers
- Who is Andrés Manuel López Obrador (AMLO)? AMLO served as the President of Mexico from 2018 to 2024, known for his administration’s significant increase in water concessions.
- What is the significance of the water concession data? The volume of national water concessions reached unprecedented levels during AMLO’s presidency, surpassing previous administrations.
- Who are the primary beneficiaries of water concessions? State-owned companies like CFE and Pemex received the majority of water concessions during AMLO’s administration.
- Why is water crucial in energy industry processes? Water serves various purposes, such as cooling, mixing, improving plant conditions, and acting as a solvent in energy industry processes.
- How did the previous energy policy impact water concessions? The CFE’s modernization of hydroelectric plants and the rise in thermoelectric plant installations contributed to increased water concessions.
- Are water concessions impacting water availability in certain regions? Despite hydrological stress in half of the country, water concessions to energy generation companies are not expected to significantly impact water availability in specific regions.
