The government of Mexico has quoted the COVID-19 pandemic as validation for new guidelines that would decrease the role energies that are renewable like solar and wind power, allowing amnesty to the government’s aging and fossil fuel power plants.
The verdict that happened on the weekend has ignited scandals among the Mexican and foreign investors who were permitted to vend their power into the grid, which is under the operation of the government. The industry associations highlighted that it would most likely disturb 28 solar and wind projects that were complete and was meant to be online, 16 more were said to be under construction with over 5 billion of investment pumped into it coming from the foreign firms.
The Mexican business coordinating council highlighted that with the investment at hand it signifies an attack and poses a threat to legal security for investment in the Mexican government, they further quoted that this could bring about grave consequences at hand such as loss of jobs and investor confidentiality. The council quoted a thirty billion in the affected investment saying that it does not consider renewable energy and also enables authorities to hollowly raise the price of electricity in the country and randomly move the power generation project that belongs to the private sector.
This is not the first dispute for President Andres Manuel who is considered as the winner of the oil industry owned by the state, and he so happens to hate the renewable energy and private-owned energy projects, since he assumed the office of the presidency he has removed plans trying on non-government oil exploration and obligated private sectors to rerun negotiations on the pipeline treaties
The latest guidelines that were published on Friday seem to achieve some of his targets, such as assuring income for the government’s electrical supplier, lifting consumption of government stashes of fuel oil, reduce the role of non-government power generators and elude.
The thing that shocked a lot of people is that his administration quoted the COVID-19 pandemic and the economic fallout that came along with it to validate the measure
The government shielded the latest guidelines quoting that it enables the National Electrical System to certify dependability in the event of a reduction in demand for electrical power because of the pandemic. Because renewable energy projects are irregular, hence power feeds will have to be delayed.
Companies involved in this sector that is the Spanish and Canadian were to make appeals to their embassies and courts, but none of them could be traced to attest to that.
Mexico has been acting slowly in constructing the transmission infrastructure that could transfer power from the arid areas whereby wind and solar projects are staged to the towns and cities, and the same case applies to the supplementary plants when power sources naturally reduce.