Mexico | Amendments to Electricity Law come at a cost to cheaper, cleaner energy sources

Summary

Although renewables such as solar and wind power can pose problems with intermittency, dispatching the most expensive and most polluting electricity first is not the answer.

Key points

• Key points:
• With the right mechanisms in place, the CFE can provide electricity whenever there are intermittency problems and be compensated for doing so. Countries such as Germany and Denmark have adopted policies to tackle intermittency problems.
• The proposed bill is yet another example of Mexico changing the rules for investors once the game has already begun and agreements potentially being breached.
• If it is approved, this will be a backward step in competitiveness, sustainability and the rule of law.

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