Mexico Power Report - Business Monitor International - Industry Reports

Mexico Power Report

Mexico Power Report - Business Monitor International - Industry Reports
Mexico Power Report
Published Aug 30, 2016
65 pages — Published Aug 30, 2016
Price US$ 1,295.00  |  Buy this Report Now

About This Report

  
Abstract:

In May ----, the Mexican government (via the agency managing the wholesale power market, Cenace) issued a tender for a second long-term energy and capacity auction, which is scheduled to be concluded in September ----. Similarly to the auction held in March ----, Cenace will sign long-term power purchase agreements (PPAs) with the auction s winners, and clean energy certiticates (CELs) will also be awarded. ...The CFE blamed the expected hike on an increase in the price of natural gas and fuel oil compared to the previous month. While Henry Hub and WTI prices rose in June, we think that the MXN sell-off in Q- ---- exacerbated the impact on the cost of generating electricity via higher import expenses for the CFE - given Mexico s high reliance on natural gas imports from the US. � Recent developments have provided support to our long-held view that engineering, procurement and construction (EPC) contractors will find business opportunities in the Mexican power transmission and distribution sector. In April, Sener announced that the development of two key power transmission projects will be opened to participation by private companies over the coming months. ...In April, Sener announced that the development of two key power transmission projects will be opened to participation by private companies over the coming months. These are a transmission line from the Tehuantepec isthmus (Oaxaca) to the centre of the country and a transmission line that will connect the power systems of Baja California and Mexico s main grid (Sistema

...BMI View: The launch of a new long-term energy auction and the announcement of tenders for power transmission projects underscore our view that the Mexican power market will offer multiple business opportunities over the coming years. These developments, coupled with Mexico s robust macroeconomic prospects and government plans for significant investment in the industry, continue to support our positive outlook for the Mexican power sector - with natural gas and renewables to outperform. ...BMI View: The launch of a new long-term energy auction and the announcement of tenders for power transmission projects underscore our view that the Mexican power market will offer multiple business opportunities over the coming years. These developments, coupled with Mexico s robust macroeconomic prospects and government plans for significant investment in the industry, continue to support our positive outlook for the Mexican power sector - with natural gas and renewables to outperform. ...These developments, coupled with Mexico s robust macroeconomic prospects and government plans for significant investment in the industry, continue to support our positive outlook for the Mexican power sector - with natural gas and renewables to outperform.

...Mexico s power sector is heavily reliant on imported US natural gas, exposing it to fluctuations in Henry Hub gas prices. Existing cross-segment subsidies to agricultural and residential power consumers are not going to be scrapped by the current energy reforms. ...Existing cross-segment subsidies to agricultural and residential power consumers are not going to be scrapped by the current energy reforms. Mexico s transmission and distribution networks will continue to be owned by CFE (although cooperation with the private sector is now allowed). � Falling electricity prices pose a downside risk to the competitiveness of rooftop and self-consumption renewable power projects. ...

  
Source:
Document ID
1755-7070
Country
Industry
Format:
PDF Adobe Acrobat
Buy Now

Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

About the Author


Cite this Report

  
MLA:
Business Monitor International - Industry Reports. "Mexico Power Report" Aug 30, 2016. Alacra Store. Dec 10, 2016. <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/Mexico-Power-Report-2026-415>
  
APA:
Business Monitor International - Industry Reports. (2016). Mexico Power Report Aug 30, 2016. New York, NY: Alacra Store. Retrieved Dec 10, 2016 from <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/Mexico-Power-Report-2026-415>
  
US$ 1,295.00
$  £  
Have a Question?

Any questions about the report you're considering? Our Customer Service Team can help! Or visit our FAQs.

More Research

Search all our Market Research from one place.