Mexico’s state-owned Comision Federal de Electricidad (CFE) is preparing to build a hydroelectric dam in the state of Nayarit at a cost that is expected to hit $76m, according to local newspaper El Universal.

What is particularly interesting is this project is proceeding against a backdrop of the government’s ambitions to reform many of Mexico’s critical industrial sectors in a bid to promote greater economic and social growth.

President Enrique Pena Nieto of late has spoken quite forcefully about his desire to liberalize the country’s energy sector, including the power sector.

When operational the 480 MW Las Cruces will produce 751 GWh per year, which is reported to be sufficient to supply electricity to 1.5m homes or meet 77 per cent of Nayarit’s demand.

CFE is due to conduct viability studies for the project next year.

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