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    Electricity crisis threatens Mexico


    August 8, 2022 - CE Noticias Financieras

     

      Mexico City - The blackouts that have been occurring on an isolated basis in Mexico will become a crisis in 2025, when the system could experience continuous failures due to lack of investment in new generation, weak power gr ids and areas with a generation deficit.

      Faced with a growth in demand, without new generation or transmission projects, power shortages will begin to occur more frequently, according to an analysis by a consulting firm at the request of a company that requested anonymity.

      Faced with a scenario of growth in electricity demand for the following years and without additional generation projects, if the transmission problem is not overcome, as it is a systemic problem, we estimate that the situation in deficit areas will worsen at an accelerated pace, resulting in a brake on the expansion of economic activity.

      There are grid restrictions that do not allow transporting cheap energy to generation centers that displace expensive generation (...) Therefore, it is essential to build new generation in deficit areas that will face higher energy costs and increasingly frequent service interruptions and lack of viability for connections of new services and industries", refers the document as an operational diagnosis for 2025.

      Mexico has an installed capacity of 89,620 megawatts and a demand of 46,000 megawatts; however, there are deficit areas with contingencies to cover the demand, such as the center of the country, the peninsulas and the western region.

      Víctor Ramírez, energy expert, pointed out that demand continues to grow without reinforcements in links or generation capacity, because although CFE announced projects for 4,438 megawatts, they have just started their construction and will not be ready before 2024 as promised.

      Blackouts go beyond the absence of electric power, as they have an impact on daily activities in homes, schools and industry.

      During this six-year term there have been at least two significant blackouts: on December 28, 2020, due to the "burning of a pasture", and on February 15, 2021, which lasted several days due to the lack of Texan gas for electricity generation as a result of a cold front.

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