Today (Feb 24) the leading global renewable energy bodies, The Global Wind Energy Council and The Global Solar Council, jointly called upon the government of Mexico to urgently restore the country's transition away from expensive and polluting fossil fuels, and reset the course to a sustainable future based on competitive, clean renewable energy.
The two industry associations published a joint statement today in response to the reversals to key parts of the Electricity Act (Ley de la Industria Eléctrica or LIE) approved by the lower parliamentary chamber earlier this week. The statement asks lawmakers to reject the bill to modify the LIE in order to avoid adverse consequences, which will span beyond the power sector to impact local industries, households and the overall investment environment. The joint statement highlights:
- The damage already done to the investment environment for renewable energy over the last two years, where national policy reforms like this bill are posing an unequivocal threat to local and foreign private sector investment into Mexico's formerly robust renewable energy market and undermining the principle of fair market competition.
- This critical legal change further relegates renewable energy supply to the back of the queue in Mexico, unwinding the progress made in its energy transition over the last decade and reversing the landmark liberalisation of the energy market in 2015.
- Further hurdles for clean energy development and generation will put at least 17,000 jobs at risk in the wind and solar industries, and initiate a harmful ripple effect in the wider value chain of industrial and commercial sectors which are committed to cost-competitive sustainable energy in Mexico.
- The urgent need to restore the country's status as a global leader of the energy transition and enable Mexico's climate commitments by re-establishing legal certainty for the renewables sector and capitalising on the significant investment, socioeconomic benefits and energy security brought by the clean energy transition.
The International Renewable Energy Agency (IRENA) Coalition for Action, an international network of 115 leading renewable energy companies, industry associations, civil society, research institutes and intergovernmental organisations, also acted as signatory to this statement.
Ben Backwell, CEO of The Global Wind Energy Council, stated: "The global wind industry encourages the Government of Mexico to reset the course to a transition to a renewables-based economy, which will generate enormous net-positive benefits in GDP growth, job creation and social welfare gains in the near term and long run. This will also serve to reinforce the resilience and independence of Mexico's electricity system, which has been tested by the recent energy crisis in Texas."
Gianni Chianetta, CEO of The Global Solar Council, added "Renewables are delivering electricity at a lower cost than traditional generation plants and bring significant benefits to the local environment and global climate commitments. The global solar industry calls on the Government of Mexico to urgently adopt policies that favour the transition to clean energy sources, which would benefit its citizens, its economy, solar businesses operating in the country and the world's climate."
About Global Wind Energy Council (GWEC)
Global Wind Energy Council (GWEC) is a member-based organisation that represents the entire wind energy sector. The members of GWEC represent over 1,500 companies, organisations and institutions in more than 80 countries, including manufacturers, developers, component suppliers, research institutes, national wind and renewables associations, electricity providers, finance and insurance companies. See more: www.gwec.net
About Global Solar Council (GSC)
The Global Solar Council (https://www.globalsolarcouncil.org) is the voice of the world's solar energy industry, a non-profit body representing national, regional and international associations as well as leading solar sector corporations. Founded at the 2015 Paris climate conference as a private-sector response to the climate emergency, the Global Solar Council brings together associations from both established and emerging markets that represent companies all along the solar supply chain.
Contact:
Alyssa Pek, Communications Director, Global Wind Energy Council (GWEC): alyssa.pek@gwec.net, +32 490 56 81 39
Francesco Luise, GSC communications: press@globalsolarcouncil.org
