In response to the recent surge in energy consumption triggered by soaring temperatures in Mexico, the country experienced prolonged power outages lasting approximately five hours last Tuesday. These blackouts, which impacted roughly 5% of consumers for up to four hours, were caused by a confluence of factors including a spike in electricity demands as people arrived home in the early evening to switch on their televisions, fans, and air conditioning units. The National Center for Energy Control reported that these disruptions occurred despite efforts to distribute them across various regions of the nation.
As the climate continues to warm, Mexico has witnessed a string of record-breaking high temperatures this year, with almost a third of the country anticipated to surpass 113°F (45°C) tomorrow. Greater Mexico City, home to roughly one-sixth of the population, recorded a peak temperature of 92°F (33.4°C) yesterday. Unlike typical patterns, the city’s high mountain valley location has failed to provide relief through nighttime cooling.
Moreover, the drop in electrical power production, which contributed to the outage, can be attributed to other reasons besides increased demand. Hydroelectric dams have been adversely affected by drought, resulting in reduced output levels, while cloud cover hindered solar power production.
This event proved to be particularly humiliating for President Andrés Manuel López Obrador, whose administration has prioritized expanding the role of the state-owned power firm, CFE, while restricting private power generator opportunities. Many of the state-controlled plants he has promoted consume dirtier fuels generated by state-run refineries. The president has attempted to limit cleaner, privately owned sources of energy such as natural gas and renewables.
Electrical utilities are also anticipated to suffer losses owing to these events. Eletrobras, a Brazilian electric utility, has already shut down a power plant because of flooding, and CPFL Energia SA anticipates suffering damages in both its transmission and generation segments following damage sustained by a dam in one of its hydropower plants and flooding of its facilities. According to XP estimates, five days without power to the company’s 250,000 clients will result in a loss of 15 million reais ($3 million) in earnings.
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