Puerto Peñasco Power Link

A $2.1 billion investment is essential for the electrical interconnection project between Puerto Peñasco and Baja California, crucial to combating energy deficits and potential blackouts in the region.

### Major Investment Needed for Electrical Interconnection Project Between Puerto Peñasco and Baja California

An ambitious project aims to create an electrical interconnection between the photovoltaic plant in Puerto Peñasco, Sonora, and Baja California. According to energy consultant Gonzalo Monroy, this venture would require a substantial investment of $2.1 billion. Despite the recognition of its urgency by authorities, the project’s formal plans and financing details remain undisclosed.

The necessity for such an investment stems from differences in frequency and load between the Puerto Peñasco plant and the Baja California system, which aligns with Southern California’s grid. Baja California faces significant energy deficits every summer, and without this interconnection or expanded infrastructure to import more power from the United States, the frequency of blackouts is expected to increase.

Currently, only a fraction of the projected 1,000 megawatts of the Puerto Peñasco plant is in place. The federal government has prioritized modular construction, with merely 100 megawatts built so far, indicating potential delays or even the possibility of the project remaining incomplete. A key issue is that the project has not been formally integrated into the plans of the Federal Electricity Commission (CFE), making it dependent on budget allocations from the Energy Ministry. Historically, budgetary constraints during economic crises have led to stalling of energy projects.

This approach mimics another significant federal project, the Dos Bocas Refinery, where the government funds construction, and once completed and properly certified, the project will be transferred to CFE. This method helps avoid increasing state enterprises’ (CFE and Pemex) debt burdens and concerns over financial metrics.

Speculation exists about future involvement from private companies, with the potential for them to construct and operate plants under the auspices of CFE, which would retain official energy generation and sale rights. Recent geothermal exploration initiatives by the Energy Ministry indicate potential in this area due to stagnation over the past two governmental terms.

Meanwhile, the CFE faces challenges requiring an investment exceeding $3 billion to upgrade Mexico’s transmission infrastructure and mitigate worsening power outages. The pandemic-related failure to invest in this area in 2020 under Manuel Bartlett’s management exacerbated existing bottlenecks, impacting regions like Querétaro, which sometimes build and upgrade transmission assets independently, only to subsequently transfer them to CFE.

### Secondary Article: Geopolitical Influence on Energy Projects

The ongoing development of Puerto Peñasco’s photovoltaic plant and the proposed interconnection with Baja California exemplifies the influence of global energy strategies on local projects. An increase in renewable energy projects is seen worldwide as countries aim to reduce carbon footprints and enhance energy independence. However, these projects frequently encounter geopolitical challenges, such as cross-border regulatory differences and the balancing of national and state interests.

Globally, countries attempt to navigate similar complexities. For instance, in the European Union, projects face hurdles due to varying policies among member states. These challenges often necessitate significant diplomatic negotiation to align collective objectives with individual national interests.

In North America, the interconnectedness of Mexico, the United States, and Canada in terms of energy supply, with systems like California’s grid, underscores the need for cooperative frameworks. These frameworks are crucial for managing energy demand surfeits and shortages, harmonizing regulatory standards, and securing investment flows to ensure economic and ecological sustainability in energy projects.

The lessons gleaned from such international experiences may benefit the ongoing interconnection planning between Puerto Peñasco and Baja California by fostering multilateral partnerships and leveraging collective expertise to overcome logistical and fiscal barriers while enacting sustainable energy infrastructure.