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nothing would be implemented until after the 2000 elections, thereby taking it out of the political arena. The Mexican Congress is scheduled to begin debate on CFE’s privatization in March 1999. While the government fiercely denied any immediate plans to invite greater private participation in the oil sector, analysts said the electricity overhaul could be a litmus test to see how Mexican society would accept a similar process for Pemex. Government / Legislation Comisión Federal de Electricidad (CFE) CFE controls the generation, distribution, and transmission systemofMéxico. Pressuretoprivatizethecountry’s power sector stems from the CFE’s financial constraints followingrecentbudgetcuts. Despitethepressure,the country’s switch to privatized power is still uncertain. Secretariat of Energy Article 27 of the Constitution gives exclusivity to the state in electricity and petrochemical markets on the basis that theyareofstrategicimportance. Amendmentstothe Constitution state that generation of electricity less than 30 MWe can be private; over 30 MWe remains the State’s responsibilitybutconcessionsareallowed. Also,the Mexican Government slowly but steadily is removing its tariff subsidies, the co-generation and other self-supply projects (generally of up to 30 MW) which have been allowed since 1992 will become more attractive, creating an additional source of demand. México operates under Roman Law which prohibits what it does not permit. Electric Power Law of 1975 — 1992 Amendment In 1992, an amendment to the Electric Power Law of 1975 was adopted, allowing domestic and foreign private sector investment in generation in areas not related to the supply ofpowertothepublicingeneral. Theseareasareself- generation, co-generation, independent power production, andsmallproduction. Small-scaleproductionisdefinedas projects with a capacity less than 30 MWe, self-supply for ruraloroff-gridcommunitiesupto1MWe,orexportation up to 30 MWe. Independent production is the generation of electric power provided by a plant with a capacity of more than 30 MWe intended exclusively for sale to the CFE or for export. Geothermal Resources in Latin America & the Caribbean 54PDF Image | Geothermal Resources in the Caribbean and Latin America
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