Green Energy News

Good morning! After the gas pipeline conflict between CFE and private operators was resolved, these facilities started to operate again. In fact, in the Texas-Tuxpan pipeline, injection is set to increase to cope with the country’s power thirst. In addition, CFE releases long-term plan to ensure electricity supply in Baja California Sur, that together with Baja California rely as the only states that remain disconnected from the National Interconnected System (SIN).

The NYC Climate Week is around the corner, taking place next September 23-29, followed by Santiago’s Climate Change Conference (UNFCCC COP 25) happening in Chile next December. Recent announcements point out that the UK will be the 2020 host. A Typhoon causes fires at Japan’s largest floating PV plant and a drone attack at Saudi Aramco’s facilities pushes oil prices up at its highest levels since 1988.

Energized already? Here is your weekly news:

NATIONAL

CFE and Fermaca reach agreement that represents US$672 million in savings for the utility.

This ensures the transportation of natural gas in La Laguna-Aguascalientes and Villa de Reyes- Aguascalientes-Guadalajara pipelines for 20 years

Texas-Tuxpan gas pipeline starts operations.

A week after President López Obrador reached an agreement with gas transporters, natural gas injection increased from 1,000 cbf to 50,000 cbf, says S&P Global Platts

Baja California Sur to increase its capacity by 472MW in 2022.

In the short-term, this strategy includes the modernization of Baja California’s internal combustion plant and the installation of four generation mobile units that together will add 138MW to the grid

IFC and Banco Sabadell signed US$100 million loan to boost sustainable projects in Mexico.

Banco Sabadell will administer the loan and channel these funds to clients seeking to develop hotel projects and green buildings that promote practices such as efficient energy use, rational water management, waste removal and reduction of emissions

INTERNATIONAL

Japan’s largest floating PV plant catches fire after Typhoon Faxai impact.

The solar plant covers around 44 acres of water and features 50,904 solar modules provided by Kyocera corporation. According to firefighters, the extent of the fire involved 50 panels.

Saudi oil attacks push prices up by highest amount since 1988

The attacks on Saudi Arabia’s oil infrastructure led to the biggest jump in global prices since 1988 by wiping out 5.7m barrels of production a day – 5% of the world’s oil supply.

Engie expects that half of its renewable projects come from PPA deals.

Between 2019-21, the French IPP aims to develop 4.5GW through three-year PPAs out of a total development portfolio of 9GW. Only in the US, the company has signed close to 3GW.

Saudi Arabia names new Energy Minister.

Prince Absulaziz relieved Energy Minister Khalid al-Falih from his post, less than a week after he was removed as chairman of the state-owned oil giant Saudi Aramco

UK to host COP26 in Glasgow next 2020 in partnership with Italy. This follows the PM’s commitment at the G7 Summit in Biarritz to ensure that the COP26 Summit addresses both climate change and biodiversity as two sides of the same coin

Good news for Mexico’s off-takers! Deacero becomes the first qualified user to operate without the representation of a qualified supplier in the Wholesale Electricity Market (WEM). In addition, Vitol starts the process to commercialize products such as energy, power and CELs in a private platform. THE GREEN EXPO reunited industry leaders last week, where the role of digitalization of the solar industry was discussed. You can find relevant discoveries here. Meanwhile, global investment in renewables is set to be tripled this decade, 18 newly approved oil and gas projects worth US$50 billion undermine the Paris Agreement goals.

Energized yet?

NATIONAL

Deacero to become the first qualified user in the Wholesale Electricity Market

According to CENACE, as of July 2019 the WEM had the participation of 89 generators, 42 qualified suppliers and 21 non-supplier commercializers. Currently there are no companies participating in the market without the representation of a qualified supplier.

Digitalization is key for solar deployment: ASOLMEX, SPE and GIZ study shows

In the past six years, solar capacity went from 30MW to 4,519MW. Technologies such as distributed generation, microgrids, smart meters, energy storage, AI and blockchain are part of this transition.

Vitol starts process to commercialize energy in the Mexican market

Through the mexicoelectrico.com platform, private players will be able to purchase and sell products such as energy, power, CELs and congestion coverage. The goal is to consolidate 3TWh contracts with a duration of 10 years.

CFE strategizes to contain blackouts caused by “Fernand” in Tamaulipas

CFE installed a strategic operation center in the region that includes 480 workers, 300 vehicles, 100 cranes and mobile generation plants.

INTERNATIONAL

Oil majors undermine UN climate goals with a US$50 billion investment in new projects

London-based Carbon Tracker think tank report found that 18 newly approved oil and gas projects worth US$50 billion could be left “deep out of the money” in a lower carbon world.

Germany to start closing black coal plants by 2020

The government will announce far-reaching steps for climate protection on Sept. 20. This includes details on the implementation of its coal exit, which states that by 2022 an estimated 12 hard coal plants would be shut down.

Global renewables investment to triple this decade, says UN

Global investment in new capacity for renewable energy is set to reach US$2.6 trillion by the end of this decade, more than triple the amount of the previous decade.

US presidential candidate Booker proposes US$3 trillion climate change plan

Cory Booker aims to reach a 100 percent clean energy economy by 2045. His plan calls for a new White House-coordinated “Environmental Justice Fund” that focuses on defending communities from environmental treats.

California’s energy storage incentive program has been a great success, with more than 11,000 battery storage systems installed to-date. The problem is, it’s not reaching the state’s most vulnerable communities. A new proposal from the California Public Utilities Commission (CPUC) aims to fix some of the barriers preventing disadvantaged communities from participating in the program, and it allocates $100 million to a new program designed to offset the cost of battery storage systems for populations threatened by wildfires and related utility power shutoffs.

Last week, the uncertain landscape clears for the Mexican natural gas industry. After ongoing pipeline infrastructure was put in doubt by President López Obrador, CFE and private players reach a common agreement that rating agencies like Moody’s qualify as positive. On the other hand, CNH proposes new investments in areas that have not been awarded in previous bidding rounds to increase national gas production.

The UK becomes the first country to establish an EV charger mandate for new homes and offices by 2020. In fact, EV charger stations already outnumber gas stations in this region. Enel starts building Chile’s largest solar PV project, which account for half of the country’s capacity under construction and Greta Thunberg finalized its transatlantic trip.

Energized yet? Here is your weekly roundup!

NATIONAL

CFE and gas pipelines developers finally reach a common agreement.

This arrangement included a 30-year contract extension and a better tariff for gas transportation that will translate into decreasing the utility’s payment obligation from US$12 billion, to US$4,500 billion.

Agreement is positive for both transporters and CFE: Moody’s.

According to Roxana Munoz, Analyst at the rating agency, the agreement brings certainty toward investment and ensure projects will continue.

CNH proposes to increase local gas production to reduce dependency on the US.

According to Alma América Porres, Commissioner at the regulatory agency, there are opportunities to increase production through PEMEX’s priority fields and bidding rounds

In Mexico, the limit does not exist for PV solar: Mexican Forum for the Photovoltaic Industry

According to Francisco Granados, Director of Electricity at CRE, to date Mexico enjoys 3,291MW of installed capacity in large scale utility projects and 112,660 contracts under a distributed generation scheme.

INTERNATIONAL

UK proposes world’s first EV charger mandate for new homes and offices

Under regulations set to take effect on the 1H20, every new home would require to install an EV charger with a minimum output of 7kW and a universal socket. This is the first country where EV chargers outnumber gas stations.

Enel starts building Chile’s largest project

Italian group’s 382MW Campos de Sol accounts for about half of all PV capacity currently under construction in nation. The project, located in the Atacama Desert, involves a total investment of US$320 million.

Greta Thunberg reaches New York after 15-day yacht journey

Thunberg has been sailing to New York to speak at the UN Climate Action Summit on September 23, and traveled on a zero-emissions sailboat to reduce the environmental impact of her journey. But, is the whole journey emission-free? Andreas Kling, spokesman of the captain disagrees.

China rises its hand as the country’s CO2 emission targets are victimized by the US trade war

The world’s biggest producer of climate-warming greenhouse gases has pledged to bring emissions to a peak by around 2030 as part of the global effort to curb rising temperatures.

Don’t forget Mexico Energy Review will be on September 3-5 at THE GREEN EXPO. Find us at the stand No.135! You can sit with us and take a copy of Mexico Energy Review 2019.

Governments from all over the world are shocked in the aftermath of the Amazonian fire crisis. Brazil has had more than 72,000 fire outbreaks so far this year, an 84 percent increase on the same period in 2018. Countries like Ireland and France have threatened Bolsonaro’s administration with the cancellation of the EU-Mercosur trade deal, while Ireland is considering banning Brazilian beef imports. In the US, Bernie Sanders reunites with California’s fire victims and proposes its “Green New Deal” plan and the retail giant Walmart sues Tesla over solar panel flaws that occasioned seven rooftop fires since 2012.

Even after the cancellation of the long-term electricity auctions, renewables are experiencing its strongest momentum. This week, Engie’s Tres Mesas III wind farm was inaugurated. It is part of a five-project conglomerate that will deliver 593MW to the grid. Iberdrola, which is committed to investing US$5 billion in the country between 2019-2014, announced the construction of a combined cycle and solar park. While the conflict between CFE and private pipeline operators continues, CONCAMIN works on a proposal to ensure gas supply.

Energized yet? Here’s your weekly roundup!

NATIONAL

Queretaro bets for renewable growth. According to the Ministry of Sustainable Development, the starting point for to detonate this growth will be an analysis to identify potential projects.

Iberdrola to invest US$750 million in 2019  through a combined cycle plant in Veracruz and a solar park in Puebla. These projects are part of the company’s plan to invest US$5 billion between 2019-2014.

Engie inaugurates Parque Eólico Tres Mesas III in Tamaulipas, which was awarded in the second long-term electricity auction, this facility will deliver 223GWh.

Private initiative gets proposal ready to address pipeline conflict. The National Confederation of Industrial Chambers (CONCAMIN) is working with interested parties to resolve this issue in the following days.

In October, Grupo Bimbo will release 100 percent decomposable wrappers. This is part of the company’s strategy to tackle climate change, in addition to joining the RE100 initiative.

INTERNATIONAL

Already cheaper than gas, China’s renewables to undercut coal by 2026. According to Wood Mackenzie, wind and solar LCOE is already cheaper than gas-fired power generation.

Bernie Sanders proposes huge renewable build-out and publicly owned power. The Democratic candidate’s Green New Deal will direct US$2.4 trillion of investment into renewables and storage.

After seven roof fires, Walmart filed a multimillion-dollar lawsuit against Tesla. The retail giant says Tesla’s “negligent installation and maintenance” has caused fires on seven roofs since 2012.

Amazon rainforest fires: global leaders urged to divert Brazil from ‘suicide path’. In the last five days, there were 7,746 fires in Brazil, causing a 278 percent increase in deforestation in the last month alone.

Brazil threatened over EU Trade Agreement. France and Ireland say they will not ratify trade deal with South America until Brazil takes action on the Amazon fires.

The electric utility industry has been buffeted by two recent trends that threaten to upend the profitability, and in some cases the future viability of, those companies that are slow to adapt to a new, rapidly changing landscape. Specifically, in the past decade, the industry has had to grapple with both waning demand and the growth of distributed energy generation.