The Mexican power market has been one of the most active markets in Latin America for several years. Mexico has closely followed its long term national plan for power additions, which have been primarily in the form of combined cycle power plants (CCPPs) either owned by national utility Comision Federal de Electricidad (CFE) or as independent power producer (IPP) projects.
Last year, Amec Foster Wheeler’s Global Power Group booked four heat recovery steam generator (HRSG) projects in Mexico and we are actively pursuing four more in early 2016. Key to our recent success to supply and design these units is our ability to offer our clients the flexibility of an imported HRSG or an HRSG supply, which meets or exceeds the high national content requirements often imposed for projects in Mexico. Cooperation with our alliance partners allows us to meet national content requirements which can exceed 60% for the HRSG supply.
Additionally, sweeping changes in Mexico’s energy reform process has further spurred foreign investment and interest in the market. The reform aims to attract new investment into the sector and modernise the grid. The government is allowing private players to participate freely as generators and marketers in a competitive wholesale market. CFE has lost the monopolistic aspects of its former regulatory and operational roles.
Furthermore, estimates are that the generation capacity investments will grow by 45 GW or $70 billion over the next decade. More than half of that new capacity would come from currently undeveloped projects. Amec Foster Wheeler is committed to working in the Latin American market offering our clients’ competitive pricing with value added technology, services and capabilities.