• LITIGATION: Investors in Mexico’s renewables sector seek a temporary injunction against the López Obrador Government’s October decision to alter the market for “clean energy certificates” (CELs) by expanding it to hydro and geothermal legacy plants from the state-owned utility (CFE).
• HURDLES: While not revealing the identity of companies suing, Mexico’s solar and wind energy associations alerted of the consequences of flooding the CELs market, rendering worthless USD 9 billion in investments current and future; they did not revealed the legal venue where they are filing.
• ARGUMENTS: “These measures:…One, violate environmental rights. Two, destroy value of assets of renewable energy projects already in operation. And three, set a precedent to make legal changes by the administrative route decreasing the confidence of the investors in our country”, the groups said.
• PROMISE: In many ways, the inclusion of CFE’s legacy hydro and geothermal plants in the CELs market also calls into question if Mexico will be able to reach its 35% clean energy target for 2024, a promise under the 2015’s UN Paris Climate Change Agreement.
