Dino Barajas Quoted by Bloomberg on New Renewable Energy Plans in Mexico

Akin Gump cross-border transactions partner Dino Barajas was quoted in the Bloomberg article “Mexico Plans Huge Wind, Solar Generation Hookups,” which reports on Mexico’s plans to build two state-of-the-art power transmission lines—an indication, according to the article, that Mexico is serious about making renewable energy as competitive as possible.

The article reports that two auctions are planned for next month for billion-dollar high-voltage direct current lines that will help link Oaxcaca’s wind resources and wind and solar projects in Baja California to Mexico’s industrial center. Mexico’s transmission lines have been congested due to population growth and rising demand for electricity, which, in turn, has raised costs and made electricity more expensive. The new lines are expected to reduce this congestion, which could help make investing in Mexican renewable energy more attractive, according to Barajas.

While the new lines have yet to be bid, Barajas is optimistic about their expected impact on renewable energy development. “The more transmission that is built in Oaxaca, the more development you are going to see in the wind sector,” he said. “The Achilles’ heel in developing wind projects was always evacuating the wind energy. The more you are able to wire up that region, the better off developers are going to be in having access to wheeling capacity.”