Iberdrola will not invest more in Mexico “until it clarifies its energy policy”

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“If they say not to invest foreign companies, we will not do it,” he said, pointing out that in any case, investments in Mexico represent “very little on the balance sheet.”

Iberdrola’s president, Ignacio Sánchez Galán, has warned that the group does not plan to invest in Mexico until the country’s government clarifies its energy policy, after recently the Mexican president, Andrés Manuel López Obrador, has launched attacks against Spanish energy companies with a presence there, especially directed at Iberdrola.

” We are not making energy policies, they are drawn up by governments, ” said the manager in the presentation of the company’s quarterly results, adding that the company plans to complete its current investment plan and that nothing will start until the situation in the country is clarified.

“If they say not to invest foreign companies, we will not,” he said, pointing out that in any case, investments in the country represent ” very little on the balance sheet .”

López Obrador has criticized Iberdrola,  the leading private electricity producer in Latin America’s second-largest economy, in his daily press conference, as well as the business carried out between the previous government and companies in Spain.

“In the case of Iberdrola, why did it speak like this, with transparency? because  I have information that it is they who are promoting this campaign, nothing more than undercover, “ said the president, although he did not present evidence.

At the end of June, it turned out that the Spanish company had canceled the investment in a power plant in Tuxpan, Veracruz, having failed to reach an energy supply agreement with the Federal Electricity Commission (CFE). At the time, López Obrador said he had no information in this regard.

Ignacio Galán
Courtesy

On the other hand, Galán has defended a greater commitment to long-term power purchase contracts (PPAs) as a way to boost renewables in Spain, beyond the auctions of ‘green’ capacity that He plans to retake the government before the end of this year.

In a conference with analysts to present the results of the first nine months of the year, Galán considered that the Government should undertake the necessary measures in this regard since there are companies “willing to invest” in long-term energy.

“We are going to respect the policy that the government is developing, but it seems to me that there are many people who are willing to provide the money, and what you have to do is negotiate with customers,” he said.

In this sense, he gave the example of the photovoltaic plant in El Andévalo (Huelva), recently inaugurated and which will supply ‘green’ energy to the Heineken Cervera. “I think you have to raise this issue,” he added.

Iberdrola manages long-term power purchase agreements in markets such as Spain, Portugal, the United Kingdom, the United States and Mexico, originating from wind and photovoltaic projects with an installed capacity of more than 2,500 MW.

In Spain, the company has pioneered this modality with companies in sectors such as banking, telecommunications, the beer industry, distribution, and sports brands.

Eliminate network investment limit

Galán also insisted on demanding that the Executive remove the currently existing investment limit on distribution activities with the aim of allowing the sector to accelerate investments.

“We have to be more ambitious and increase investments, more ambitious in terms of renewable targets, and for this, we need more networks,” said the president of Iberdrola.

In another sense, Galán highlighted the energy firm’s commitment to green hydrogen, for which it has created a new business unit, as it can be a solution in those areas where electrification cannot be carried out.

Thus, he pointed out the alternative of the generation of green ammonia, such as the plant that the group develops in Puertollano (Ciudad Real) in alliance with Fertiberia.

In this regard, Galán announced that in the next few days Iberdrola will announce “more ambitious plans” in this line also with Fertiberia.

AMLO accuses Iberdrola of a media campaign against him

Iberdrola

His statements are part of a confrontation with private companies that generate electricity, mainly renewable.

The president of Mexico, Andrés Manuel López Obrador, accused Spain’s Iberdrola of promoting an alleged media campaign against him to stop recent rule changes in the electricity sector that have confronted investors with the government in recent weeks.

For several days, the president has criticized Iberdrolathe leading private electricity producer in the second-largest economy in Latin America, in his daily press conference, as well as the business carried out between the previous government and companies in Spain.

Iberdrola
Reuters

“In the case of Iberdrola, why did it speak like this, with transparency? because I have information that they are the ones promoting this campaign, nothing more than undercover, because conservatism has these two characteristics. Don’t forget, they are very corrupt, they are very hypocritical, “said López Obrador.

It was not possible to immediately obtain a comment from Iberdrola on the president’s statements.

His statements are part of a confrontation with private electricity generating companies, mainly renewable, unleashed after a series of changes to the regulations of the electricity sector, which has displeased investors and some allied countries of Mexico.

Andrés Manuel López Obrador

The president has said that he will defend in court the new rules, which have been challenged by those affected, and which include the brake on the start of operations of new renewable energy plants, arguing that their intermittency threatens the reliability of the national electricity supply, during the pandemic of the coronavirus.

In addition, provisions of the Ministry of Energy to give the State more power to decide who can generate electricity and in what quantity, and new rates so that they can use the transmission network of the state Federal Electricity Commission (CFE).

CFE
Reuters

Source: altonivel.com.mx, forbes.com.mx, businessinsider.mx

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