Home Business-new Renewable energy companies win round one against AMLO’s government

Renewable energy companies win round one against AMLO’s government

by Yucatan Times
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Wind and solar projects may resume their pre-operational testing; Cenace will challenge the suspension granted by a judge.

MEXICO CITY (Times Media Mexico) – 23 of 44 wind and solar generation projects affected by new policies that prevented their operation will be able to resume pre-operational testing, thanks to amparos -injunctions- filed against the National Energy Control Center (Cenace).

This policy was justified by Cenace using the effects of covid-19 as an excuse. The federal government considered that the intermittent generation of wind and photovoltaic power plants would affect the reliability of the National Electricity System. This gave priority to plants that use fossil fuels, such as fuel oil and coal.

Once notified about the injunctions, Cenace allowed 23 projects to resume their tests; however, last night, it informed that it would challenge the provisional suspension granted by a District Court.

As a result of the injunctions filed against the “Agreement to guarantee the efficiency, quality, reliability, continuity, and safety of the National Electricity System,” 23 of the 44 wind and solar generation projects affected by this policy will be able to resume their pre-operational tests.

According to data from the Mexican Association of Solar Energy (Asolmex) more than 6.4 billion dollars in investments made for the construction of generating parks, are at risk and promotes the uncertainty in the sector.

The private sector and various civil and environmental organizations considered that this decision threatens investments, the environment and fails to comply with international commitments made by Mexico.

According to the Asolmex, the agreement has negative impacts on 44 projects, representing 50% of the new capacity that would come into operation in 2020. Twenty-eight solar photovoltaic and wind power plants were ready to start operations, and 16 under construction, supported by 6.4 billion dollars in investments.

The measures will also involve monthly emissions of more than 714,000 tons of CO2 that cannot be avoided, and put at risk about 29,517 jobs.

Legal resources
The companies filed a series of legal appeals that granted protection to avoid being affected by this situation. Therefore, Cenace instructed in an official letter, to allow 23 of these projects to resume their pre-operational tests.

The document filed against the policy mentions that all those companies undergoing preoperative tests or ready to schedule operations granted a license to resume them.

CENACE will contest the injunctions
Cenace filed a complaint before the Collegiate Tribunal on Administrative Matters for the protections granted to the 23 projects so that they could resume their tests. The organism claims they will “attend and respect” the judicial instruction, however, they consider the decision of the courts have a direct impact on the National Electric System (SEN), since “the industry is reserved to the Mexican State as it is considered strategic and a priority.”

Cenace assured they will contest the District Court’s provisional suspension with all the legal instruments at its disposal.


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