The next administration of the Federal Electricity Commission (CFE) is expected to open up to private initiatives to make investments in electricity generation and accelerate the energy transition, Moody’s said.
Adrián Garza, senior credit officer of the rating agency, said in an interview that the vision of the virtual President-elect, Claudia Sheinbaum, seems to be aligned with energy transition plans, which means a significant change from what could be observed in recent years.
However, he highlighted the concern that the investment needs of the electricity sector and the energy transition in the coming years will be so great that CFE cannot cope on its own and will require greater private participation.
“There will be more needs in a six-year horizon, especially if we want to accelerate the energy transition… but we are concerned that the investment needs may be so large that CFE cannot cope alone and may face a credit risk problem.
“The investment needs are such that it would be ideal to have private participation in the sector, as well as being a way of diversifying risks in the public and private sectors; but how much will be involved is one of the biggest questions,” he said.
He said that the price of gas could put CFE in a vulnerable situation, despite the coverage it has contracted.
He assured that subsidies for electricity rates and the company’s operations will continue, while ruling out any risks to the company’s credit rating.
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