A clean energy market that was sparkling at some point is now in a devastating situation. According to analysts, Coronavirus could be hitting hard and worsening the situation. When the ruling term of Andres Manuel Lopez Obrador was halfway, all the anticipations have hit the bottom of the rock, resulting in a market tear. During the leadership of AMLO (the president’s abbreviations), he mainly focused on dismantling the market freedom measures done by the previous government. The primary catalyst in AMLO’s government strategies is fortifying the position of the country’s market.
Mexico’s 2013 energy reform market’s actual end goal was to pave the way for a nongovernmental investment.
When AMLO began ruling his country, he majored in his focus to rule on the energy sector. A few days after his presidential inauguration, he did away with the long-awaited fourth clean energy public event.
The first three clean energy public events between 2016 and 2017 were not as successful as anticipated. That cleared a way for new investors into the market who, in turn, conveyed low prices. Some of the winners in those energy public events include Rican developers like Sun Power, European Powerhouses Enel Green Power and EDF. Another one was China’s JinkoSolar.
When AMLO canceled the auction, clean energy analysts concluded that it was just a measure that could not last long since the new government was starting to feel for its environment. But time proved those analysts’ assumptions wrong. In 2019, there were rumors that the auction will go ahead, but no dates have been announced so far.
In June, AMLO made accusations against all illegal actions in the nation and threatened to take legal action against the frauds. He went on to state that he will deal strictly with that proton corruption in the country.
Mexico will not meet its anticipated goal of 35% of clean energy by the coming four years.
Mexican state only saved CFE’s 54% shares of its electric market. The country has also been serving itself without considering other sectors, especially the environmental section. AMLO and CFE, which work under Chief Executive Officer Manuel Bartlett, have no hurry to comply with the long-standing of non-fossil fuel production in the future.
The main strategies of CFEs in making investments in the renewable energy sector have upgraded to the current hydroelectric facilities. That capacity is unachievable and also the expenses of token investment on heat energy.