In a decree released last weekend, support for renewable energy like wind and solar power will be reduced. Rules for the approval of such projects will also be tightened. The government claims that this is due to the coronavirus pandemic, but several experts believe that this was done to boost the country's fossil fuel power plants. 

Locals are only starting to feel the impact of the COVID-19 pandemic. Since the government has declared stay-at-home orders, there has been a dramatic reduction in energy consumption. A lot of people have either lost their jobs or are now working from home. With offices closed, several businesses shut down, and industrial activity put on hold, power sales are expected to fall sharply. 

Due to the apparent power output decrease, CENACE or the National Energy Control Center has decided to put a halt to wind and solar projects in their final stages and suspend grid connections to solar and wind farms. This move was not taken in a positive light

Mexico's foreign relations might suffer

As soon as the new rules were released in a bid to take control over renewable energy projects, the country immediately received protest letters from countries in the EU as well as Canada. They have also called for a meeting with Energy Secretary, Rocio Nahle citing that these sudden changes would harm foreign investments that have already been committed.

Nahle has cited that the country's older forms of energy- hydro and nuclear, are also forms of clean energy. The government has also stood by their decision saying that renewable energy sources may cause power interruptions and that these clean energy sources will have to wait until after the pandemic is over.

The Business Coordinating Council, or the CCE has lodged a complaint against CENACE and more protests against this decision are expected to arise. Currently there is a total of $6.4 billion worth of investments with the majority of it coming from foreign firms. These investments include 28 wind and solar projects which were fully ready to operate and go online, and an additional 16 projects which were currently under construction.

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Solar and Wind Powerhouse

Time and time again, experts have claimed that there is huge potential for Mexico to be a powerhouse when it comes to renewable energy. Mexico's solar resources are 60% higher than the best solar source in Germany. These sources are mostly untapped due to inadequate support from the government, but there is still a bright future ahead of it.

At present, solar power is in its infancy and amounts to less than one percent of the country's energy matrix.

Apart from being a solar powerhouse, Mexico also has a huge potential as a source for wind energy. Istmo de Tehuantepec located in southern Mexico is one of the windiest places on the planet. It is a popular spot for kitesurfing and in some of the highest places can easily flip a car. This place is located between the Gulf of Mexico and the Pacific Ocean making it a natural wind tunnel.