Friday, March 12, 2021
I. Introduction
The Mexican President’s preferential Bill to Reform the Electricity Industry Law has passed both Houses of the Mexican Congress without changes and is now applicable law (the
Reformed Electricity Law or
the Law).
As we know, a major change introduced by the Reformed Electricity Law is the modification of the dispatch rules in Mexico’s National Electric System. The Law will favor power plants owned by the Federal Electricity Commission (
CFE or
Comisión Federal de Electricidad). The hydro-power plants will be dispatched firstly into the power grid, then the nuclear, geothermal, combined cycle and thermoelectric power plants, all of them owned by CFE. In third place, the solar and wind power stations owned by private entities and, at the end, the combined cycle power stations owned by private entities.
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On February 23, 2021, the House of Representatives discussed and
approved the draft of the Amendment of the Electricity Industry Law
proposed by Mexico President López Obrador on February 1
(the “Amendment”), with a total of 304 votes by the
representatives of MORENA, the political party of the president
which holds a majority of seats in the House of
Representatives.
The plenary session followed up a heated discussion by the
Energy Commission of the House of Representatives on February 19,
in which the minority parties submitted a motion to include a
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Sindh protests against electricity policy
Says final draft of National Electricity Policy 2021 ignores its recommendations
Load-shedding policy is causing a decrease in the sale of electricity from the available take-or-pay power plants and thus resulting in higher per unit cost of electricity. PHOTO: FILE
Sindh has lodged a soft protest against the federal government over largely omitting its recommendations in the final draft of National Electricity Policy 2021, arguing that it should not be called a national policy document unless suggestions of the province holding potential to ensure energy security are incorporated.
“Federal government (should) … recognise Thar coal as a primary fuel for base load power generation for meeting electricity demand of the country,” Sindh Minister for Energy Imtiaz Ahmed Shaikh said in a letter dated February 1 to Federal Minister for Energy (Power Division) Omar Ayub Khan.