To read the full article in MegaWatt Daily, click here.
PA's Jim Heidell, an energy and utilities expert, is quoted in an article in MegaWatt Daily. The article offers insight on Mexico's Comision Federal de Electricidad (CFE) as it balances between retaining its industrial clients and serving subsidized residential customers.
Commenting on this topic, Jim explains: “CFE is going to lose clients, that is the reality of competitive markets, the question is how many.”
Jim continues: “The issue is that CFE doesn't have easy access to capital markets compared with competitors like Iberdrola, which is Mexico's largest private generator, with 6 GW of current capacity and plans to grow to 10 GW by 2020.”
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Jim goes on to say: “CFE will focus on smaller industrial users as they are usually the last ones to adapt to new market trends. But CFE has already lost without competing for large industrials with loads over 25 MW, he added, explaining the utility does not have the customer service nor the customized solutions new suppliers are offering.”
Jim concludes: “With deregulation, Mexico has ended this fiction of companies partnering with suppliers to build projects for self-consumption.”