Huge Investment Needed in Mexico Power
Mexico needs to invest $35.2 billion in new power plants in the next 10 years to meet expected demand according to Jorge Chavez Presa, Mexico`s deputy energy minister. The Energy Ministry has warned that vast sums of public and private money will have to be invested in the government-controlled sector to meet demand expected to grow at nearly six percent annually.
Under the independent power producer (IPP) scheme, Mexico has been tendering power plants which allows private firms to build, operate and own plants under the Federal Electricity Commission`s guidelines. Mexico`s electricity generation capacity stands at about 35,000 MW, and Chavez Presa said another 21,700 MW will need to be built within 10 years. n