Privatization Proposals to Benefit Mexicos Electric Industry

Privatization Proposals to Benefit Mexico`s Electric Industry

Recently proposed Mexican electricity sector reforms are potentially positive to industry fundamentals, defining the country`s efficiency, competitiveness and business risk, according to Duff & Phelps Credit Rating Co. (DCR). In an effort to increase Mexico`s electricity supply and modernize its transmission and distribution systems, President Ernesto Zedillo is seeking to expand the role of the private sector and reorganize state-owned utilities. An independent system operator and power pool would be created to facilitate the coordination of generation dispatch and supply. “DCR expects to see increased private investment in electricity and related projects in Mexico if President Zedillo`s proposal proceeds,” said Jason Todd, DCR assistant vice president, in the latest edition of DCR`s Latin America Insights. “To meet anticipated demand growth of 6 percent annually, the electricity sector will require an estimated $25 billion of new investment over the next six years–much more than the Mexican government wishes to finance.”

Previous articlePOWERGRID_INTERNATIONAL Volume 4 Issue 5
Next articleELP Volume 77 Issue 7

No posts to display