The rating agency Moody’s warned of a lag in Mexico in the energy transition due to the lack of investment in transmission networks, which, it said, play a crucial role for this goal in the region.
“Among the most important economies in Latin America, Mexico is falling behind in its energy transition plans, as it has not made enough investments in transmission. “The country does not have robust transition plans and is expected to continue to rely heavily on thermoelectric power generation, much of which comes from natural gas exports from the United States,” the firm said in a report published this Tuesday.
According to Moody’s, electrical energy transmission will play a fundamental role in the decarbonization of Latin America in the coming years, which is why, it said, planning initiatives and institutional frameworks are key to unlocking essential investments in the expansion of networks. of transmission.
These networks, the firm added, are not only essential to integrate more renewable energy into the region’s energy matrix, but also improve the reliability of electrical systems.
“Today, Mexico does not present a regulatory framework for private investments in the transmission sector,” the rating agency highlighted.
However, he stressed that the Federal Electricity Commission (CFE) announced investment plans in 2023 of more than seven billion dollars in transmission lines until 2029, an amount that includes about 750 million dollars for a project aimed at expanding the lines. of transmission in the northwest, north and west regions of the country.
Moody’s warned that further decarbonizing energy supply chains will require large investments in network development and system upgrades in the coming years, but that the profitability of the projects has changed due to high rates of interest, inflation and currency volatility.
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“Complex planning and approval, economic conditions and social challenges delay the completion of projects,” he stated.
2024-03-26 15:33:54
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