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Weekly Report - 18 February 2021 (WR-21-07)

MEXICO: Blackout exposes failings of electricity system

A major blackout affecting millions of Mexicans has once again raised serious questions about the suitability of the energy policies promoted by the government led by President Andrés Manuel López Obrador. The incident has highlighted the weaknesses of Mexico’s electricity system, which the government has failed to recognise, much less address. This is further fuelling the calls for the government to abandon its energy policy objective of ensuring that the state-owned electricity firm, Comisión Federal de Electricidad (CFE), remains the dominant player in the domestic electricity market by limiting the participation of private generators and instead concentrate on modernising the sector by embracing private participation and renewable energy generation.

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