ENERGY ADVISOR a WEEKLY PUBLICATION of the DIALOGUE February 19, 2021

LATIN AMERICA ADVISOR ENERGY ADVISOR A WEEKLY PUBLICATION OF THE DIALOGUE www.thedialogue.org February 19, 2021

BOARD OF ADVISORS FEATURED Q&A TOP NEWS Nigel Blackaby Global Head, OIL & GAS International Arbitration Group, Freshfields Bruckhaus Deringer What Will Mexico’s State Firms Risk Jeffrey Davidow Wasting $400 Bn Senior Counselor, The Cohen Group CFE Prioritize in Amid Transition Jonathan C. Hamilton A new report by the Natural Partner, Resource Governance Institute White & Case the Next Five Years? says national oil companies could Raul Herrera squander $400 billion over the next Partner, 10 years as the energy transition Corporate & Securities Practice, Arnold & Porter accelerates. State oil firms in Latin America are particularly at risk. James R. Jones Chairman, Page 2 Monarch Global Strategies

Jorge Kamine POWER SECTOR Partner, Corporate & Financial Services, Rolling Blackouts Willkie Farr & Gallagher Hit Mexico Amid Craig A. Kelly Senior Director, Texas Winter Storm Americas Int’l Gov’t Relations, Mexican state-owned electric utility CFE, which is led by Manuel Bartlett Díaz, last month Exxon Mobil Rolling blackouts have hit several published its business plan for the 2021-2025 period. // File Photo: Mexico’s Senate. Mexican states as officials struggle Jorge León to adapt to a shortage of electricity Energy Economist, BP caused by severe winter storms in Last month, Mexican state-owned electric utility Federal Texas, which supplies natural gas Jeremy Martin Electricity Commission, or CFE, published its 2021-2025 Vice President, Energy & Sustainability, to Mexico. Institute of the Americas business plan, including estimated investments of about Page 2 Mayya Novakovskiy Q $3.12 billion this year on efforts to overhaul its generation Manager, Western Hemisphere, OIL & GAS Chevron capacity, a 20 percent increase from last year. What are the most im- Larry Pascal portant elements of the CFE’s business plan? Are the utility’s estimated Guyana Cancels Chairman, investment levels adequate, and how far will they go in advancing its Americas Practice Group, Tender for Oil Haynes & Boone plans? What role will private investment play in Mexico’s electricity sec- Marketer: Jagdeo R. Kirk Sherr tor in the coming years, and can future power auctions be expected? The Guyanese government has can- President, celed a revised auction to market Clearview Strategy Group Larry B. Pascal, member of the Energy Advisor board, and its share of crude from its Stabroek Mark Thurber block and is evaluating direct offers Partner, Natalia Cosio, both members of the International Practice Hunton Andrews Kurth from international firms instead, Group at Haynes and Boone LLP: “Mexico’s CFE released its said Vice President Bharrat Jagdeo. Jose L. Valera Page 2 Partner, 2021-2025 business plan, detailing its project portfolio and Mayer Brown LLP A estimated investments in generation, distribution and transmission for Lisa Viscidi power projects. The plan contemplates an investment equivalent of ap- Program Director, Inter-American Dialogue proximately $19 billion for the construction of several new power plants Vanessa Wottrich and the development and maintenance of distribution and transmission Principal Analyst for Latin America, Equinor infrastructure. In particular, the plan includes the construction of 13 power generation plants, primarily located in the states of Baja California, Baja California Sur, Yucatán and Veracruz (eight of these proposed projects are combined cycle power plants), and with these new projects, the CFE seeks to achieve 54 percent market share in the generation segment by 2024. As to distribution, approximately 100 projects are estimated for the development and modernization of the power distribution grids, Jagdeo // File Photo: Guyanese Continued on page 3 Government.

POWER SECTOR NEWS OIL AND GAS NEWS NEWS BRIEFS

Rolling Blackouts Hit State Oil Firms Risk AES Gener Secures $306 Million for Projects Mexico As Winter Wasting $400 Billion in Chile and Colombia Storms Sweep Texas Amid Transition Chilean power utility AES Gener has secured approximately $306 million in a capital Rolling blackouts hit several Mexican states National oil companies worldwide risk wasting increase to finance wind, solar and battery this week as officials struggle to adapt to $400 billion on expensive oil and gas proj- storage projects in Chile and Colombia, Renew- a shortage of electricity caused by severe ects over the next 10 years that may break ables Now reported last week. The company’s winter storms in Texas, the Associated Press even only if the world fails to meet the Paris controlling shareholder, AES Corporation, reported. Bitterly cold winter weather north of climate goals, according to a new report by participated in the capital hike, expanding its the U.S.-Mexico border cut supplies of natural the Natural Resource Governance Institute, or ownership stake to 67 percent. The firm said gas that much of northern Mexico relies upon NRGI, Reuters reported last week. In the report, the transaction involved some 1.976 billion to generate electricity, leading numerous called Risky Bet, the NRGI estimated that state shares. factories in Mexico to shut down. The National oil firms could invest $1.9 trillion over the next Council of the Maquiladora Industry said as decade, of which one-fifth of those investments many as 1,600 plants were forced to halt would be unviable unless oil prices stay above operations because of a lack of power, putting $40 a barrel. “State oil companies’ expendi- LNG Canada Receives OK hundreds of thousands of people out of work, tures are a highly uncertain gamble,” said David to Ramp Up Construction the wire service reported. Authorities were Manley, a senior economic analyst at NRGI, a Canadian health officials have approved the announcing rolling blackouts via Twitter with- New York-based NGO, Reuters reported. “They ramping up of construction at Royal Dutch out coordinating with the factories, said the could pay off, or they could pave the way for shell’s LNG Canada export project with im- organization’s president, Luis Hernández. Much economic crises across the emerging and de- proved Covid-19 protection measures, Reuters of northern Mexico was without reliable power veloping world and necessitate future bailouts reported last week. The province’s health through Wednesday, and blackouts stretched that cost the public dearly,” added Manley, officer last month ordered work at the sites of into central Mexico, as far south as Guerrero who co-wrote the report. Latin American and five major industrial projects, including LNG state. Beginning late Sunday, unexpectedly Caribbean countries would be among the worst Canada, to be reduced amid pandemic-related low temperatures in Texas froze natural gas positioned in such a scenario, in part because concerns. Among the measures, local workers pipelines, cutting off private plants that supply heavy debt burdens are already causing prob- at the project will not be able to leave the site some 80 percent of northern Mexico’s electrici- lems for national companies such as Mexico’s except for medical emergencies or “critical” ty. Mexico uses natural gas to generate approx- Pemex and because Latin American countries’ in-person appointments, LNG Canada said. imately 60 percent of its power nationwide. The oil companies continue to hold expansion- winter storms led Texas’ power grid to become ist views, Reuters reported. “Throughout overwhelmed amid soaring demand for electric their history, Latin American countries have heat. “No one’s model of the power system argued, by and large, that the state has to own Power From Renewable envisioned that all 254 Texas counties would ‘strategic’ industries,” Jose L. Valera, a partner Sources Up 63 Percent come under a winter storm warning at the at Mayer Brown and member of the weekly Year-on-Year in Argentina same time,” said Joshua Rhodes, an expert on Energy Advisor board, said in a Q&A published Texas’ electrical grid at the University of Texas May 22. “The results are perennial losses, bad The amount of electricity generated by at Austin. Mexican state power utility CFE said services, scarcity, technological lapse and renewable energy sources in Argentina was that it is planning to develop a fuels storage inefficiencies,” he added. In the same edition, up 63 percent year-on-year in 2020, according policy to offset future gas supply shortages. Thea Riofrancos, an assistant professor in the to wholesale electricity market administrator CFEnergía, its fuels division, will develop “a Department of Political Science at Providence Cammesa, Renewables Now reported last strategic commercial and operative storage College, told the Energy Advisor that Latin week. In total, it produced 12,742 giga- policy that will minimize negative impacts of America is at a crossroads. “Government can watt-hours (GWh) of renewable energy, an abrupt price movements and drastic variations either embrace a just transition to renewable increase from the 7,811.5 GWh generated in in the volumes ordered by Mexico to generate energy … or double-down on oil and gas, 2019. Wind power was the source, generating electricity,” said director Miguel Reyes in a CFE betting on industries with an uncertain future,” 74 percent of the total electricity from renew- board meeting, Argus Media reported. she said. able sources, followed by solar power, with 11 percent, and hydropower, with 10 percent.

Guyana Cancels FEATURED Q&A / Continued from page 1 and approximately 142 new transmission tion has two options: significantly increase Revised Tender to projects are expected between 2021 and electricity subsidies or increase tariffs for Market its Crude 2025. No further details about these projects industrial activity. Either option is a shot in were provided. To finance the expected the foot. CFE’s business plan also fails to Guyana has scrapped a revised tender to projects, the CFE will determine the financ- take into account Mexico’s commitments on market its share of crude from its offshore ing schemes they deem appropriate, either climate change, as no additional renewable Stabroek block and instead is evaluating direct using their own resources or through other capacity is anticipated until at least 2027. offers from international companies, Vice sources. For example, the plan suggests Setting the environmental concerns aside, President Bharrat Jagdeo said last week, Argus the use of so-called Long-Term Productive this omission will harm Mexico’s ability to Media reported. The government had re- Infrastructure Investment Projects (PIDI- attract foreign investors at a time that ESG launched the auction last August , with Russia’s REGAS), and the Energy Investment and considerations are gaining importance in Lukoil presenting the only qualified bid among Infrastructure Trust (Fibra E) as vehicles for investment decisions. Indeed, the recent 29 companies, Jagdeo said. “The process some form of private sector involvement. introduction of a bill that would roll back the was unacceptable as it was nonsensical and The plan does not include any new solar or 2013 electricity reform portends dark days not competitive because of criteria set by the wind projects nor any long-term electricity ahead for private investments. This will no previous government,” Jagdeo added, without auctions. The absence of these aspects has doubt be the topic of a future Q&A.” providing further details. Guyana is looking been criticized by members of several civil for companies that can market its next two and social organizations such as the Mexi- Roxana Muñoz, assistant vice cargoes of one million barrels of crude from can Institute for Competitiveness.” president-analyst at Moody’s the ExxonMobil-operated deepwater Stabroek Investors Services: “On Jan. 22, block. Jagdeo said it sought offers for mar- Pedro Niembro, senior director A CFE (Baa1 negative) announced keting from Exxon’s partners in the block, U.S.- at Monarch Global Strategies: its 2021-25 business plan, which includes based Hess and China’s CNOOC unit, adding “Perhaps the most important planned investments of about $14 billion to that Hess offered the best terms, Argus Media A aspect of CFE’s 2021-2025 increase its power generation capacity (45 reported. The vice president did not say when business plan is that it makes clear what percent of total investments) and improve the government would complete its evaluation was already widely assumed: the state- Mexico’s transmission (23 percent) and dis- of direct offers by prospective marketers. The owned utility seeks to enhance its dominant tribution (24 percent) networks. In 2021, in- first three cargoes of Guyana’s share of crude market position by avoiding competition vestments will increase 21 percent as com- were awarded to Shell in a restricted opening from private players. More than half of CFE’s pared to 2020. The plan does not include tender. President Irfaan Ali, who took office investment budget of $19 billion over the any specific solar or wind energy projects, in August, canceled a bidding round that the five years is destined for generation projects, which is in line with the federal government’s previous administration had initiated amid particularly combined cycle plants, that energy policy that focuses on prioritizing the political uncertainty following parliamentary would add 4.5 megawatts (MW) of capac- use of existing thermal plants and increas- elections last March. “Ali’s inauguration helped ity, while only 40 percent is earmarked for ing the dependence on imported natural gas, stabilize the political situation,” Jennapher its transmission and distribution network despite the implications for clean energy Lunde Seefeldt, an assistant professor at despite it being in dire need of investment. targets. Moody’s believes that Mexico will Augustana University, told the Energy Advisor With CFE generation costs hovering around not achieve its target of 35 percent clean en- in a Q&A published Nov. 27. “Ali’s early moves $72/MW, it is hard to understand the deci- ergy generation by 2024, reflecting the lack as president should be attractive to investors,” sion to let an auction system that last deliv- of CFE’s renewables investment and its can- she added. “The Ali government will continue ered $20/MW prices fade into oblivion, es- cellation of a long-term clean energy auction to take a business-friendly approach to dealing pecially when the poor transmission network in 2018 with no new subsequent auctions. with oil companies, particularly because its was the main cause of a recent blackout Moody’s considers the regulated electric and intent is to make sure the oil sector develops that affected 10 percent of Mexico’s energy gas utilities industry as having moderate risk quickly, and with it see an increase in oil users. The emphasis on CFE-produced exposure to environmental considerations, revenues for the government,” Raúl Gallegos, generation will add pressure to the country’s meaning most issuers can adapt or manage director of Control Risks, wrote. “The ability of finances given President López Obrador’s environmental risks over the medium term the government to manage oil revenue respon- promise to keep residential electricity tariffs to avoid a material impact on credit quality. sibly and transparently is another matter.” under control. To do this, the administra- CFE’s shift away from renewable energy Continued on page 6

RENEWABLES NEWS ADVISOR Q&A Bolivia Launches Oruro Solar Farm, What Has Bolivia’s Arce Meets Total Demand Achieved in His First 100 Days?

Bolivian President Luis Arce and other gov- As of Tuesday, Bolivian depend on the political motives defined by ernment officials last week inaugurated the President Luis Arce has the Evo Morales-led MAS, with a view toward second phase of the 50-megawatt (MW) Oruro been in office for 100 days. departmental, provincial and local elections solar farm in the western department of the Q A former economy minister, this March. Arce needs to cast his presi- same name, Renewables Now reported. The Arce assumed the country’s presidency dential leadership in a party that is backed $108.1 million project, which was partially fi- last November with vows to represent all by a complex and contradictory network of nanced by the French government as well as by Bolivians and also restore the country’s corporate organizations. The power of the the European Union and Bolivian state-owned stability following a tumultuous period after coca producers and the peasant union bloc power company ENDE, adds to the first 50-MW longtime President Evo Morales resigned a also has strong influence. Arce will likely phase, which was launched in September 2019. year earlier. How well has Arce led Bolivia deepen and give preference to relations with With the entry into operations of the second in his first 100 days, and what have been China, due to the comparative advantages phase, the solar power complex will be capable his main accomplishments so far? How will that China’s strategy offers in the region. of fully supplying electricity demands of the Bolivia’s relations with China develop under Relations with Russia are more political than entire population of the Oruro department, Arce, and what initiatives will follow his economic (as it is not a major economic making it the first department in the Andean recent phone call with Chinese President Xi power), and Bolivia’s purchase of vaccines is nation to cover its population’s consumption Jinping? What does Russia’s recent delivery irrelevant as the diversified and competitive needs solely with solar energy, the government of its Sputnik V coronavirus vaccine to offers of the vaccines will be dictated by said, Renewables Now reported. Bolivia foretell about the future of relations market forces, not subject to ideological between those two countries? criteria. Bolivia’s relations with the bloc of countries aligned with China, Russia and Iran POLITICAL NEWS Erika Brockmann Quiroga, will likely deepen. It is no coincidence that former member of Bolivia’s Sen- Bolivia has re-established relations with Iran Brazil Launches ate: “Arce has pursued a set of and that the visa requirement to enter Bolivia A wide-ranging measures that do has been re-established for U.S. citizens Plan to Vaccinate not mark a clear path to structurally address and Israelis (which, by the way, sends a bad multiple and simultaneous crises that the signal). Lately, Arce has anachronistically Entire Town in Study country is facing. He persists in the narrative praised the Cuban model and socialism, that he must rebuild the country and recover even though there is plenty of evidence of Brazil’s Butantan Institute began Covid-19 vac- democracy after 11 months of disastrous the failure of that model and criticism of cinations for the entire adult population, with a management by a government of ‘coup which the left keeps avoiding.” few exceptions, of a town in a study to widen plotters.’ This rhetoric closes the path to knowledge about the effects of the vaccine and reconciliation and ignores the government’s the pandemic, CNN reported. “The entire adult red ink—its fiscal deficit and the reduction of EDITOR’S NOTE: More commentary on this population, estimated at 30,000 people, will be reserves—which date from 2014. Arce has topic appears in the Q&A of Tuesday’s issue immunized in three months, in an unprecedent- the challenge of governing in adverse condi- of the Latin America Advisor. ed action,” the institute tweeted Wednesday tions, different from the previous boom cy- about the study in the town of Serrana, in São cle. For now, the government’s actions highly Paulo state. Through the plan, researchers hope to “follow the evolution of the epidemic. It has technical aspects that will make it possible the institute’s director, Dimas Tadeu Covas. All illnesses will not be vaccinated in the study, to make calculations, make projections and people over the age of 18 in Serrana will be giv- the institute said. “Based on what we are calculate whether the vaccine is capable of en the Chinese CoronaVac vaccine, developed going to learn here, we will be able to tell the reducing the transmission of the virus,” said by pharmaceutical maker Sinovac. Pregnant or rest of the world what the actual effect of the breastfeeding women and people with serious vaccination against Covid-19 is,” said Ricardo

NEWS BRIEFS Palacios, Butantan’s director of clinical studies, the pandemic passes, which could save the CNN reported. The study, known as “Project S,” government from painful spending cuts before Mexico Arrest Six for will include follow-up checks on all participants the country’s October midterm elections, the Allegedly Trafficking Fake in order to determine to what extent CoronaVac Financial Times reported. “An IMF program is reduces the spread of the novel coronavirus, the only likely source of policy anchors and Covid-19 Vaccines the Associated Press reported. The institute a credible medium-term framework that can Police in Mexico have arrested six people who will require proof of a history of residence in bring stability,” the Exchange Bondholder Group stand accused of trafficking fake vaccines the town following reports that some people said Wednesday, Reuters reported. “However, against Covid-19, the Associated Press re- had rented or bought property in Serrana in the government appears to be seriously con- ported. The arrests were made in the northern order to get vaccinated in the study, said templating delaying an agreement with the IMF state of Nuevo León, according to the federal Covas. Butantan has contracts with Sinovac in order to have the freedom to continue its Public Safety Department. Mexico’s assistant for 46 million doses of the vaccine, in addition unsustainable policies.” A deal to restructure health secretary, Hugo López-Gatell, said the to agreements for future technology transfers the $44 billion that it cannot repay to the IMF fake shots were being passed off as Pfizer’s in order to produce the vaccine domestically. is seen as needed to strengthen the country’s vaccine, which is only available in Mexico Brazil is one of the hardest-hit countries in the economy. The Argentine government did not through government vaccination programs. world by the pandemic. The country has more immediately respond to a request for comment Suspects were selling shots for $2,000 each. than 9.9 million reported cases of Covid-19, from the wire service following the statement more than any other country except the United by the Exchange group. The group also cited States and India, according to Johns Hopkins government policies including price freez- Bolivia Returns Nearly University. Brazil also has more than 242,000 es, grains market interventions and capital reported deaths from the disease, more than controls as “shorter palliatives that are bound $347 Million to IMF any other country except the United States, to fail and only store up greater problems down Bolivia’s central bank said on Wednesday that which has more than 490,000. the road,” Reuters reported. it had returned a loan of nearly $346.7 million, plus interest, to the International Monetary Fund, Reuters reported. The administration of ECONOMIC NEWS IDB, Executives former interim President Jeanine Áñez, who Launch Partnership was in office for less than a year following the departure of longtime President Evo Morales, Creditors Blast for Region’s Recovery approved the loan last year. Áñez’s government ‘Erratic’ Policies had said the financing was necessary after the The Inter-American Development Bank and a political crisis that followed the 2019 election. of Argentine Gov’t coalition of 40 global corporate executives on Tuesday launched a partnership aimed at A major group of creditors of Argentina on driving Latin America and the Caribbean’s eco- Colombian Attorney Wednesday blasted the country’s government, nomic recovery, the IDB said in a statement. saying its “erratic” economic policies are The plan will focus on empowering women, General’s Ecuador stunting its growth and taking a toll on bond accelerating digitalization and strengthen- Visit Draws Criticism prices, Reuters reported. The Exchange Bond- ing regional value chains. Business leaders, holder Group, which was involved in the debt including from Amazon, AT&T, Citibank, Copa, The recent visit of Colombia’s attorney general restructuring that helped Argentina emerge Google, Itaú Latam, MetLife, Telefónica, Visa, to Ecuador amid the latter’s electoral recount from its ninth sovereign default, said that it Walmart and several others, signed a “part- has sparked criticism in both countries, was concerned that the government’s talks nership declaration” and pledged to work with Agence France-Presse reported Monday. with the International Monetary Fund over the the development bank to mobilize resources in Colombia’s Francisco Barbosa met with restructuring of $44 billion in debt were being these three areas, the IDB said. “Today’s gath- his counterpart to discuss information that “subordinated to politics,” the wire service ering with leaders from 40 of the world’s most allegedly links Ecuadorean left-wing presiden- reported. Last weekend, the Financial Times innovative global and regional companies, tial candidate Andrés Arauz with the ELN, an reported that Argentine Vice President Cristina and the signing of this historic Partnership armed Colombian guerrilla group considered Fernández de Kirchner, who served eight years Declaration, enshrined our shared vision and an a terrorist organization. Arauz, who will face a as the country’s president before leaving office action plan for future investment, growth and yet undetermined candidate in Ecuador’s runoff in 2015, and her allies want to postpone a prosperity in our countries,” said IDB President in April, has denied the accusation, calling it a restructuring deal with the IMF. Fernández Mauricio Claver-Carone. The IDB loaned a “coarse lie.” de Kirchner wants to delay a deal until after record $21.6 billion last year.

FEATURED Q&A / Continued from page 3 LATIN AMERICA ENERGY ADVISOR is published weekly by the Inter-American Dialogue Copyright © 2021 may not have credit implications in the near energy from CFE—as a parastatal compa- term, but risks could materialize in the next ny—will be privileged, despite the fact that Erik Brand five years. While the business plan defines the energy provided so far by the company Publisher [email protected] the level of investment over the next five comes mainly from dirty fossil fuels. Future years, it is not clear how CFE will finance the energy auctions under the conditions of past Gene Kuleta Editor investments. CFE will not be able to finance years are even harder to expect.” [email protected] them with its own budget, and Moody’s does Anastasia Chacón González not expect additional government transfers. Aldo González Melo, associate Reporter & Associate Editor Moody’s expects CFE will continue issuing at Holland & Knight: “CFE has [email protected] debt, which will weigh on its credit quality, pledged to invest not only in but there is a congressionally authorized boosting its generation capacity, A cap on debt levels, forcing CFE to rely on but also in maintaining and renewing the Michael Shifter, President other funding sources, including issuance of transmission and distribution infrastructure Rebecca Bill Chavez, Nonresident Senior Fellow equity-like instruments (Fibra E).” of its subsidiaries, which is sorely needed as Sergio Bitar, Nonresident Senior Fellow aging plants and lack of new technologies Joan Caivano, Senior Advisor Beatriz Olivera, director of have increased CFE’s overall generation and Michael Camilleri, Director, Rule of Law Program ENGENERA and professor at the operational costs. Private think tanks esti- Kevin Casas-Zamora, Nonresident Senior Fellow National Autonomous University mate that CFE’s average generation costs Héctor Castro Vizcarra, Nonresident Senior Fellow A of Mexico: “The energy policy (including combined cycle plants) may be Julia Dias Leite, Nonresident Senior Fellow of ‘rescuing’ and restoring the sovereignty almost three times higher than the average Ariel Fiszbein, Director, Education Program of the country’s energy sector is consis- of private generators participating in the Peter Hakim, President Emeritus tent with the federal government’s recent market as a result of past long-term power Nora Lustig, Nonresident Senior Fellow actions. CFE’s business plan is perfectly auctions. The national grid needs stability Manuel Orozco, Senior Fellow aligned with this energy policy, but it con- and capacity, but strengthening the state Margaret Myers, Director, Asia and Latin America Program tradicts important commitments on climate utility most likely won’t suffice, and it won’t Xiaoyu Pu, Nonresident Senior Fellow and environmental matters. The plan does modernize the sector. Per CFE’s own calcu- Jeffrey Puryear, Senior Fellow point out the importance of accomplishing lations, by 2025 the national grid will require Mateo Samper, Nonresident Senior Fellow GHG-emission reduction goals and national up to 24.8 gigawatts (GW) of additional Tamar Solnik, Director, Finance & Administration commitments to generate electricity based generation capacity. It’s uncertain whether Lisa Viscidi, Director, Energy Program on clean sources. However, it proposes an CFE will efficiently allocate the investments Denisse Yanovich, Director of Development, important renovation of the generation park published in its plan, but it is clear that the External Relations & Special Projects in the National Electric System, with a total federal government will continue to push its addition of 24.8 gigawatts (GW), of which regulatory and legislative agenda in order Latin America Energy Advisor is published weekly, with the exception of some major the majority is generated by a combined to benefit the utility and displace private U.S. holidays, by the Inter-American Dialogue cycle technology based on fossil fuels (10.2 producers. The latest bill that the president 1155 15th Street NW, Suite 800 Washington, DC 20005 Phone: 202-822-9002 GW), followed by photovoltaic technologies submitted to Congress seeks just that, but www.thedialogue.org (7.5 GW) and wind (5.7GW). This places it raises a number of trade, competition, in- ISSN 2163-7962 renewable energy generation in a secondary vestment, political and constitutional issues, place. The plan also postpones the entry into the costs of which remain to been seen. Subscription Inquiries are welcomed at operation of new renewable projects until Power auctions do not seem likely to occur, [email protected] 2027. It seems that CFE’s future generation save for some overhauling projects. The bill The opinions expressed by the members of the Board of Advisors and by guest commentators do not necessarily projects based on renewable energy will sent to Congress expressly eliminates the represent those of the publisher. The analysis is the sole be just rhetoric. Under this scenario, it is obligation of CFE to hold long-term auctions view of each commentator and does not necessarily represent the views of their respective employers or difficult to expect that there will be private for basic electricity supply. We can expect firms. The information in this report has been obtained sector investment in renewable sources of litigation, court stays, regulatory muddles from reliable sources, but neither its accuracy and photovoltaic and wind energy. The political and renewable energy plants struggling to completeness, nor the opinions based thereon, are guaranteed. If you have any questions relating to the scenario for private investors will be difficult, reach commercial operation in following contents of this publication, contact the editorial offices because the participation and dispatch of years.” of the Inter-American Dialogue. Contents of this report may not be reproduced, stored in a retrieval system, or transmitted without prior written permission from the publisher.