The “Agreement to guarantee the efficiency, quality, reliability, continuity and security of the National Electric System” published by the National Center for Energy Control (Cenace) opened the possibility for the authority to stop or limit the electricity generation of renewable private projects , which will affect 109 wind and solar plants in Mexico.

These plants represented an investment of 18 thousand 365.6 million dollars in the last 20 years, according to data from the Energy Regulatory Commission (CRE), but just over a third of them, 34 works, are from five companies: Iberdrola , TSK, Grupo Enel, Acciona and Ammper.

“The agreement prevents the entry into operation of new renewable energy plants in the national territory and may limit or exclude the generation of plants that are already in operation,” said David Berezowsky, lawyer at the Foley Arena firm in Mexico. He remarked that with this, Cenace assumes powers of the regulatory body of the sector that is CRE, or in its case, of the Ministry of Energy.

“The foundation and motivation of the Agreement is not correct because it does not prove the reason why the intermittency of renewable energy sources has caused the alleged damage to the National Transmission Network,” he added.

Sources close to the private energy industry revealed that this type of decision causes uneasiness among investors, because it is not only about foreign capital, but also national companies and pension funds.

While the Citizen Observatory of Air Quality reported that This type of agreement opens the opportunity to start fuel oil-based power generation plants that were in disuse and scheduled to be withdrawn from the electricity system due to their inefficiency, high economic, health, environmental and greenhouse gas emissions.

Iberdrola is the company with the most wind and solar projects in Mexico in operation, as it has eight plants, which represented investments of over one thousand 932 million dollars. While TSK also has eight that represented close to 500 million.

Grupo Enel is also one of the firms with investment in the country with wind and solar projects, which total 2 thousand 337 million dollars.

In the case of the Spanish companies Acciona and Ammper, there are six and five projects in operation which have, respectively, totaling investments of 2 billion dollars.

It is worth mentioning that last week the federal authority published that 23 projects that were in the preoperative phase can resume their activities after some promoted amparos against the Cenace agreement, these add investments of more than 3 billion dollars.

However, there are 269 projects with CRE permission registered in the construction phase or due to start works, for which they will face brakes.

“Red Eléctrica’s operating problems are not caused by clean plants or companies, but are the consequence of a lack of investment in transmission networks, which is the exclusive power of the State,” described Coparmex.

Judge supports renewables

Energía (Cenace) assured that the district judge who on Monday granted the definitive suspension of the measures published by the agency on April 29 last acted without technical knowledge of the subject and without measuring the impact that its resolution will have on the National Electric System ( SEN).

Cenace refers to Judge Rodrigo de la Peza who granted 13 projects the definitive suspension of the agency’s measures that stop pre-operative tests on wind and solar plants.

“It should be noted that it granted the definitive suspension without knowledge of the technical situation (…), endangering said public good to the detriment of the Mexican State, represented by Cenace for these purposes”, says the text sent this morning by the agency.

In the statement, Cenace also reported that it is preparing the challenges for the resolution of Monday issued by the First District Court in administrative matters. It is still pending that the two courts specialized in economic competition grant the definitive protection to more than 25 projects that have filed the application.