U.S. voices 'real concerns' over Mexico energy plan as official visits

Some U.S.-based energy companies with investments in Mexico's power sector, particularly renewable energy firms, have complained of unfair treatment. Lopez Obrador last year launched a constitutional reform https://www.reuters.com/world/americas/mexico-president-says-electricity-reform-has-been-sent-congress-2021-10-01 to boost state control of the electricity market, arguing it was a matter of national security https://www.reuters.com/world/americas/mexican-power-bill-us-sights-top-energy-official-meets-lopez-obrador-2022-01-20, and that past governments had skewed the market in favor of private capital.

U.S. Energy Secretary Jennifer Granholm said on Friday she had repeatedly raised concerns about the risk to investors of Mexico's plan to tighten state control of the electricity market during talks with top Mexican officials this week.

Granholm met President Andres Manuel Lopez Obrador and senior members of his Cabinet, including Energy Minister Rocio Nahle, on Thursday and Friday on a visit to Mexico City in which the Mexican power market initiative drew close scrutiny. "In each meeting, we expressly conveyed the Biden-Harris administration's real concerns with the potential negative impact of Mexico's proposed energy reforms on U.S. private investment in Mexico," Granholm said in a statement.

"The proposed reform could also hinder U.S.-Mexico joint efforts on clean energy and climate." Granholm said competitive energy markets that benefit North America should be upheld, and that she had been assured Mexico is committed to supporting clean energy and resolving current disputes with energy projects within the rule of law.

Earlier, Lopez Obrador said his government would address future energy disputes with foreign companies on a "case by case" basis as he took questions on the meetings with Granholm. Some U.S.-based energy companies with investments in Mexico's power sector, particularly renewable energy firms, have complained of unfair treatment.

Lopez Obrador last year launched a constitutional reform https://www.reuters.com/world/americas/mexico-president-says-electricity-reform-has-been-sent-congress-2021-10-01 to boost state control of the electricity market, arguing it was a matter of national security https://www.reuters.com/world/americas/mexican-power-bill-us-sights-top-energy-official-meets-lopez-obrador-2022-01-20, and that past governments had skewed the market in favor of private capital. The president, a leftist resource nationalist, has often couched his opposition to foreign and private participation in the energy sector as part of his drive to eradicate corruption.

"We were talking about all this, and (Granholm) understands that our mission is to banish corruption from our country as well as showing our openness to dialogue, and to go case by case," he said, referring to potential disputes. While he acknowledged that "a small number" of both U.S. and Canadian companies have complained, he did not name any of them or otherwise go into detail.

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