pwr_july-2024 - 9

GLOBAL MONITOR
technology development " to provide a
combination of the highest efficiency and
superior operational flexibility. " The company
said the 7HA.01 can also start and
provide full power in less than 10 minutes,
giving added flexibility to support changing
grid demand. In addition, it has the capability
to burn hydrogen when blended
with natural gas. Engineering support for
the project was provided by GEIQ, GE
Vernova's advanced engineering center
in Queretaro, Mexico, where local engineers
supported the commissioning of
the plant, its entrance into service, and
will provide aftermarket operations.
Jose Alberro, senior managing director
for FTI Consulting, said, " Mexico had
an important energy reform in 2013 that
opened generation and retail electricity
markets to competition and set the stage
for a wholesale electricity market, while
keeping the transmission and distribution
networks in the hands of the government-owned
national utility, Comision
Federal de Electricidad [CFE]. After his
election in 2018, President Andres Manuel
Lopez Obrador decided to increase
CFE's share of generating capacity. To
that effect, CFE acquired privately owned
generating plants and announced that it
would invest in an additional 6,300 MW,
further increasing the demand for natural
gas by about 5%. The plants are already
contracted and scheduled to come online
in the next few years. "
Some energy analysts have been critical
of Mexico's increased reliance on natural
gas. Rinaldo Brutoco, the founding
president and CEO of World Business
Academy, told POWER: " Mexico is making
a critical miscalculation in its energy
strategy by significantly increasing its
reliance on imported natural gas from
the U.S., which for electricity production
has grown from 10% to about 45% of
its energy mix since 2000. At the same
time, tragically, there has been virtually
no growth in renewable energy sources
since 2014. This strategic direction, while
seemingly beneficial in the short term,
poses substantial medium- and longterm
risks. " Brutoco said those risks
include exacerbating climate change,
and it " undermines Mexico's potential
to lead in climate resilience. " Brutoco
said continuing to import natural gas will
" divert crucial financial resources away
from vital investments in green energy
alternatives within Mexico, essential for
sustainable economic development and
energy independence. "
Brutoco added, " By continuing to expand
its natural gas infrastructure, Mexico
July 2024 | POWER
risks falling behind in the global transition
toward green technologies. This could
hinder the development of domestic
markets for innovative green technologies
and impair Mexico's ability to compete
internationally in the burgeoning
sustainable technology sector. " Brutoco
said, " The prudent path for Mexico would
involve pioneering developments in fuelassisted
microgrids that utilize a majority
of locally sourced renewable energy [such
as solar, wind, and hydro]. "
Brutoco told POWER, " These microgrids
would be interconnected, supporting
each other without the need for
extensive high-power transmission lines.
On days when renewable resources are
insufficient, onsite fuel cells using green
hydrogen could provide the necessary
power, ensuring a reliable energy supply.
Continuing to build dependence on
natural gas is both short-sighted in the
face of accelerating climate change and
destined to leave Mexico at a disadvantage
compared to nations transitioning
to more sustainable, less-costly, and exportable
green technologies. Ultimately,
if Mexico does not redirect its focus toward
more sustainable energy solutions
such as China, the U.S., European, and
Asian countries are doing, it will find itself
increasingly struggling to compete
on the world stage. "
Other analysts said Mexico needs to
ensure that bringing more power generation
online must be supported by flexible
technologies, both for electricity transmission
and distribution, and for market
applications. Lisa Henneberry, a partner
with Crowell & Moring, an international
law firm headquartered in Washington,
D.C., told POWER: " Mexico has long
been a heavy importer of U.S. natural
gas for power generation, in part due
to Mexican constitutional restrictions
[since liberalized] that made it challenging
for them to fully commercialize their
domestic natural gas resources. Market
liberalization led to quite a bit of investment
in additional cross-border pipeline
capacity that was designed to enable the
development of additional power generation,
in tandem with the ability to secure
gas supply on more competitive terms
by contracting with U.S. suppliers, which
creates opportunities for meaningful demand
growth for U.S. gas in Mexico. "
Henneberry said, " One notable caveat
here as it relates to gas for power generation
[whether pipeline gas or LNG] is
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