ELECTRIC POWER offers attendees a North American perspective, strengthened this year through the collaboration of the U.S.-Mexico Border Energy Forum. The Forum will offer a one-hour panel discussion in the EP Theater on the exhibit floor on April 1 from 11:00 am – noon, highlighting Mexico’s recent energy reforms and investment opportunities. ELECTRIC POWER recently spoke with Soll Sussman, Forum Coordinator, who will moderate the April 1 panel discussion.
Q: What are the highlights of Mexico’s 2013 Energy Reform for the electric power sector?
Sussman: While most news coverage of Mexico’s Energy Reform of 2013 has focused on its impact on oil and gas, the measures also are expected to bring about enormous changes in the electricity sector. The private sector will have new opportunities to invest in generation, and the monopoly status of the Comisión Federal de Electricidad (CFE), the national electricity commission, will be reduced. It will no longer have authority to oversee private-sector contracts. A new National Center for the Control of Energy – essentially like an ISO – is scheduled to be created this year. Overall, Mexico's Energy Reform is expected to produce a major boost to foreign direct investment in Mexico.
Q: What are some principal ways that the Mexican energy market is different than the U.S.? And how are they similar?
Sussman: Unlike the United States, where local, state, and national factors play in the electric industry, most of Mexico's electricity market—including generation, transmission, and distribution—has been determined by the CFE. Similarly, the status of Pemex, the national oil and gas monopoly, will be changed significantly as a result of this reform with new opportunities for foreign investment.
Q: What are expectations for Mexican electricity demand growth over the next 12-24 months and what are the main drivers?
Sussman: Electricity demand has been growing steadily over the past decade, averaging about 2% per year. Some forecasts show that it will increase by as much as 4% annually in the next few years. Traditionally, the northern border states of Mexico have seen higher per capita use of electricity.
Q: What can attendees expect to learn by attending your session at ELECTRIC POWER?
Sussman: This session will focus on two major aspects: opportunities at the U.S.-Mexico border, where fast-growing population, industry and commerce have increased demand for electricity steadily, and the changes expected in the Mexican domestic market as a result of the Energy Reform of 2013. It also will be a chance to learn more about the U.S.-Mexico Border Energy Forum, which has worked for the past two decades to increase understanding and forge new partnerships on energy.
–David Wagman, Content Director, ELECTRIC POWER
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