Exclusive: Renewable firms in Mexico must contribute to grid backup - CFE chief

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Exclusive: Renewable firms in Mexico must contribute to grid backup - CFE chief
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Private renewable energy firms in Mexico should pay for part of the baseload power underpinning the flow of electricity on the grid, the head of the state power company said on Friday, as a dispute on the future of the local industry roils the market.

FILE PHOTO: Federal Commission of Electricity Director Manuel Bartlett attends a news conference at the National Palace in Mexico City, Mexico, December 9, 2019. REUTERS/Edgard Garrido

“Wind and photovoltaic don’t pay the CFE for the backup,” said Bartlett, referring to the cost of power generation from fossil fuels, mostly natural gas, to guarantee uninterrupted flow. Last month, Mexico’s power grid regulator CENACE issued a ruling supported by Bartlett that prevented several dozen new renewable energy plants from connecting to the network.

In a provisional ruling this week, a judge ordered CENACE to back down and allow the renewable firms to continue for now with tests needed to bring plants online. “We are not troglodytes, we’re serious people,” he said, adding that he favors cleaner-burning natural gas.

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