Green Hydrogen: CFE readies energy transition in electricity

One of the most controversial decisions of President Andrés Manuel López Obrador has been to promote a reform of the country's energy sector and, in this regard, the Federal Electricity Commission (CFE) announced in a statement that this institution has assumed the commitment to the Constitutional Reform on electricity, proposed by the Federal Executive, which establishes that “the State shall establish the Energy Transition” and that “the CFE shall be responsible for the implementation of the Energy Transition in the area of electricity, as well as the activities necessary for it”.

Similarly, the Federal Electricity Commission (CFE) reported that through the Corporate Directorate of Commercial Businesses and in support of the work being carried out by the Corporate Directorate of Strategic Planning, the Seminar entitled Technological Innovation for Energy Transition has been promoted, where technological innovators in the public, private and social sectors, with the aim of exploring and examining technological innovations for the Energy Transition.

It was during the first session of the aforementioned seminar that experiences were shared that will allow the CFE to develop and implement technical and technological alternatives in its generation, transmission and distribution processes for the use of green hydrogen.

Over the past five years, green hydrogen has positioned itself as a viable alternative and a priority on the energy agenda of many countries because of its potential for decarbonization. According to research carried out by the Energy Alliance between Mexico and Germany and the Program Support for the Implementation of the Energy Transition in Mexico (TReM), the international community has assigned “colors” to hydrogen, with green hydrogen (renewable energy with at least 60% less emissions) being the cleanest and most sought to achieve climate change mitigation objectives.

In the same way, it was detailed that green hydrogen is between 50 and 300% more expensive than gray hydrogen and other fossil fuels. However, the Hydrogen Council expects its costs to drop by up to 60% over the next 10 years.

The use of green hydrogen would bring great benefits if it is used for the storage of renewable energy, electric mobility, the decarbonization of natural gas, the production of green chemicals, liquid synthetic fuels, 100% renewable methane gas as well as heat and industrial energy.

During his traditional morning conference last Friday, President Andrés Manuel López Obrador said that electricity reform “is necessary” in order to strengthen the Federal Electricity Commission (CFE), since in the neoliberal period, it was sought to weaken it, so private companies were supported in the generation of electricity.

“I believe that this reform of the Constitution is necessary to strengthen the Federal Electricity Commission because earlier, during the neoliberal period, there was an attempt to weaken, destroy, even if it sounds strong, the CFE... All this in order to privatize the electricity industry and give the business of selling electricity to companies both domestic and foreign, mainly to foreign companies”, said the president.

The president of Mexico also commented that electricity reform is necessary to end all the privileges that existed in the past, so he stressed that in the vote on the presidential initiative it will be seen which legislators are in favor of the people and who are in favor of private enterprises.

On Monday, March 28, the discussion of the ruling on the Electricity Reform of Andrés Manuel López Obrador (AMLO) began in the commissions Energy and Constitutional Points of the Chamber of Deputies.

The standard-bearer of Morena National Regeneration Movement (Morena), Manuel Rodríguez, said he hopes to have the ruling made between 13 and 16 April, and then proceed with the vote in the united committees and, finally, take it to the plenary session so that all parliamentary factions set their positions and vote accordingly.

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