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    Putting the brakes on electromobility


    August 12, 2022 - CE Noticias Financieras

     

      The reform to the Electricity Industry Law (LIE) and the Federal Electricity Commission (CFE) slow down electromobility in Mexico in freight transportation, due to the uncertainty that generates that the country in the coming years still seeks to depend on fossil fuels.

      Francisco Bautista, Advanced Manufacturing and Mobility Lead Partner at EY Latin America North, indicated that the fact that the CFE does not have the capacity to install electricity plants and supply energy prevents progress in electromobility in Mexico.

      He added that this is compounded by the uncertainty that has been generated with the LIE, which has scared off investments from companies that are betting on renewable energies, while our country is moving in the opposite direction.

      "We have to understand that a dollar that is no longer put in Mexico, is a dollar that is no longer going to return to the Country.

      "The inability to generate electricity and to have a law that provides certainty affects Mexico and will affect it more and more," he said.

      The specialist added that although the road to electrification in cargo transportation, on the part of the private sector, has advanced with the production and sale of electric units, more infrastructure is required to massify its use.

      "The challenge is to have the infrastructure and the certainty of supply, but also that the entire ecosystem - industry, authorities and companies - participate together to advance in this area," he said.

      Bautista mentioned that it would be useless for the CFE to install 10 power generation plants to promote electromobility if they are not located in the right places.

      He added that another challenge is that electricity consumption, which in the short term with electromobility will grow significantly, will not have sufficient investment due to the lack of certainty.

      The specialist added that another obstacle faced is that the existing electric grid would not be able to withstand the consumption needs expected in the future.

      He pointed out that regions such as the north and the Bajío region could have more impetus for the manufacture of heavy electric units, due to their manufacturing vocation.

      Low current

      The production of electric units in Mexico is minimal, but automakers have plans to increase it.

      PRODUCTION OF HEAVY ELECTRIC VEHICLES IN MEXICO

      (Number of units)

      2018 1

      2019 2

      2020 43

      2021 12

      2022* 11

      *January-July / Source: ANPACT

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