New hope for alternative energy in Mexico

Alternative energy companies and environmental activists had new hope for defending green energies.

Recently, Mexico’s government took a polemic decision related to energy sources in the country: to stop supporting green alternatives. The decision led a felt down in the stocks of these companies, meanwhile, environmental activists were getting worried.

Mexico was abandoning a promising career in green energies. The country has a privileged position for taking advantage of solar and eolic energy.

However, alternative energy companies and environmental activists had new hope.

The Federal Commission on Economic Competition (Cofece) presented a constitutional controversy in the Supreme Court of Justice of the Nation (SCJN) against the new energy policy of the Federal Government that limits renewable energy in Mexico.

The antitrust agency argued that the agreement that the Ministry of Energy (Sener) published in the Official Gazette of the Federation (DOF) “violates the fundamental principles of competition and free competition ordered in the Constitution.”

Specifically, the Cofece considered that the “Policy of reliability, security, continuity, and quality in the National Electric System (SEN)” is contrary to articles 16, 28, and 133 of the Constitution, as well as to the laws of the electricity sector.

“The instrument seriously affects the economic structure of the electricity sector, since it eliminates the possibility of it operating in conditions of competition and efficiency,” the commission said.

During the COVID-19 pandemic, Sener has applied measures to restrict the operation of private renewable electricity plants, intending to guarantee the supply and “reliability” of the system.

There is also the agreement of the National Center for Energy Control (Cenace) of April 29, and the resolution of the Energy Regulatory Commission (CRE) of May 28. The latter raised the rates that renewable plants must pay to use the infrastructure of the Federal Electricity Commission (CFE).