The Mexican government’s energy plan aims to enhance the capabilities of the state-owned electricity company, CFE, while establishing regulations for private renewable energy producers.
Energy Minister Luz Elena Gonzalez announced that private companies will be allowed to increase capacity by 9.6 gigawatts from renewable sources by 2030.
The $23.4 billion investment plan includes CFE expanding its capacity by 13 gigawatts through renewable energy projects and fossil fuels, with a significant allocation of $7.5 billion for transmission infrastructure.
CFE’s general director, Emilia Calleja, emphasized the goal of creating a reliable electrical system, stating, “We’re going to build a robust and, above all, reliable electrical system.”
President Claudia Sheinbaum, who previously committed over $13.6 billion to energy transition, plans to invest in wind, solar, and modernize hydroelectric plants. The administration of former President Andres Manuel Lopez Obrador had restricted private participation in electricity generation, citing reliability issues with renewable sources, which necessitated reliance on fossil fuels.
According to Prodesen, renewable energy sources produced over 38.5 terawatt hours by the end of 2023, constituting a portion of the total 351.7 terawatt hours generated, with 76% derived from fossil fuels. The ultimate challenge will be to ensure a reliable and sustainable power system that meets the country’s growing energy demands while mitigating reliance on fossil fuels. [1]