Spanish firms seek to live with Mexico's energy policy changes

At least two private sector Spanish firms are looking to adapt to energy policy changes being pushed by the Mexican government that seem to advantage state companies.

During a panel discussion hosted by Industry Exchange, representatives of two Madrid-based companies, power generator Iberdrola and natural gas infrastructure player Naturgy, said they would comply with the controversial energy policy of President Andrés Manuel López Obrador.

According to Enrique Alba Carcelén, CEO of Iberdrola México, the firm is trying to convince the government of the benefits of renewable generation, including investment at a time of great economic strife, but the firm will not scale up investments if it feels it is unwelcome.

“We want to collaborate in as much as the government considers it appropriate. If it doesn’t consider it appropriate, we won’t collaborate, there’s no problem,” Alba said. “Our company wants to invest, but it will respect the Mexican government’s energy policy and will adapt to what the government decides, and there’s little more we can do.”

Alba added the firm has invested US$8bn in Mexico in the last five years, including 250mn pesos (US$12.7mn) in social spending in communities close to the company’s projects. He also said Iberdrola has plans to invest US$95bn globally between 2020 and 2025 and could find other countries to spend it in if Mexico was not interested.

Meanwhile, José García San Leandro, president of Naturgy México and Mexico’s natural gas association AMGN, said his company had a long-term vision and would continue to seek opportunities in the country.

“With a change in government, public policy is bound to change. Companies are there to adapt to that, even though we may disagree on some points … We’ve been here over 20 years and we want to keep contributing, we have many challenges ahead in natural gas, given the fact that only 7% of the population currently enjoys the benefits of this energy source,” García San Leandro said.

He added firms like Naturgy could prove an asset for the government as they are interested in expanding natural gas infrastructure to remote areas, allowing the government to focus on other priorities.

Last year, López Obrador got into a public spat with Iberdrola, saying the company was unduly advantaged by previous administrations and criticized its decision to include former energy minister Georgina Kessel and former president Felipe Calderón on its board.