• LIMITS Mexico’s President Andrés Manuel López Obrador confirmed his intentions to establish stricter limits to private sector participation in power generation capping it at 46% of the market with the aim that CFE -the State-owned utility- is able to retain 54% of it.
• DOUBTS “The operational costs of the CFE are much higher and if they seek to dominate the generation at any cost, the users are the ones that will pay the bill”, says Paul Sánchez, an expert at Ombudsman Energía, who also wondered about the private sector projects already waiting in line.
• COSTS Government data shows that CFE’s current production costs are at USD 141.2 megawatt hour. Meanwhile, generation costs for private firms that participated in the 2016/2017 auctions are in a range between 20.6 megawatt hour and 68.9 megawatt hour.
• NEED According to a brief by Dallas-based Haynes and Boone, Mexico willl need an additional 20 GW of power over the next 20 years to meet demand derived from industry, manufacturing and population growth with the private sector needed to accomplish to meet this goal.
