Tuesday , May 11 2021

Electricity production costs will fall by up to 30% in two years



The Federal Electricity Commission (CFE) subsidiary, CFE Qualified, has calculated that electricity production costs will fall by up to 30% with the establishment of new power plants and natural gas infrastructure.

"Given that energy and fuel are predominantly, what determines the final cost of final consumer energy, this will mean a significant reduction of 25% and 30% on the whole price of the system when these projects come to "When will this be done? We estimate in the next 24 months if everything goes on on the calendar," said Katya Somohano at Forbes Mexico after taking part in the S & P Platts Méxican Energy Conference.

Electricity production costs will fall by up to 30% in two years

The discounts would be thanks to investments in infrastructure to move natural gas from South Texas that will have a significant impact on the power generating matrix.

The directive mentioned that up to 7,000 MegaWatts (MW) will be developed thanks to combined bicycle technology.

"This ensures maximum cost efficiency."

This pack of thermal energy will be complemented with at least 7,000 MW awarded in the clean energy auctions organized by the government and whose projects are being built.

"We're talking about there could be an additional portfolio that could reach up to 15,000 MW of efficient technologies that will have a very significant impact on all the costs of the system."

On the question of whether these savings will lead to a reduction in electricity rates, Somohano said that it will be a challenge to the tariff mechanisms specified by the Energy Regulation Commission (CRE), but it has said that from the market perspective, the there are incentives for costs to reduce and to be transferred to end users.


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