Mexico City is one of the highest solid waste-generating cities worldwide, producing 13,000 tons of solid waste per day. As such, the Mexico City government recently published public tender guidelines for the design, construction and operation of a thermal solid waste treatment plant, which will generate and provide up to 965,000 megawatt hours of electric power per year to the city's subway system.(1)
The tender winner will be announced by February 27 2017 and will sign a 33-year contract under a long-term service provision project. After this period, the local government will take possession of the plant and become the new owner.
The subway is the city's first electric power consumer, spending between Ps17 and Ps18 billion annually. Following the energy reform and the development of the electric free market, these costs can be reduced, as it is now possible to engage with private generators of electricity instead of having to buy electricity directly from the Federal Electricity Commission.
The reduction of fossil fuels produced through the generation of electric power is not the only positive aspect of the plant; it will also directly contribute to Mexico City's waste management transportation issue, which will result in a more sustainable city and boost energy transition.
This project is one of the steps that Mexico is taking to meet its commitments under the Energy Transition Law, in order to ensure that clean energy makes up at least 35% of the country's overall electric power generation by 2024.
For further information on this topic please contact Mauricio Lievana at Ibáñez Parkman y Asociados SC by telephone (+52 55 5250 5912) or email ([email protected]). The Ibáñez Parkman y Asociados SC website can be accessed at www.i-parkman.com.
Endnotes
(1) Further information is available here.
This article was first published by the International Law Office, a premium online legal update service for major companies and law firms worldwide. Register for a free subscription.
