Mexican energy reform begins with Enel committment

Mexico has enlisted Italian power company Enel, as it endeavours to grow the proportion of renewables in its energy mix.

Fulvio Conti, Enel chief executive, signed a memorandum of understanding with the Mexican Institute of Electrical Investigation to co-operate on geothermal generation and smart grids, two areas that Mexico is keen to expand.
Fulvio Conti
It is the first energy deal to be signed since the country’s energy reform bill, aimed at opening up the country’s hydrocarbons resources and power sectors, was passed last month.

The government hopes the reform will attract investment into Mexico’s energy and power sectors, and the government says it will lead to a cut in the country’s high electricity prices.

Though some private generation has been permitted since 1992, and more than three-quarters of new installed capacity in the past 16 years has come from the private sector, private companies in Mexico including Spain’s Iberdrola and Uniàƒ³n Fenosa, and Japan’s Mitsubishi, have until now been limited to selling via the state electricity company CFE.

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