Mexico is witnessing a pivotal shift in its energy landscape, as recent reforms and initiatives highlight a renewed focus on developing renewable energy sources. After years of policy prioritizing nationalization under President Andrés Manuel López Obrador (AMLO), the country is opening up to private investments, particularly in solar and wind power projects.
During AMLO’s presidency, which spanned from 2018 to 2024, Mexico’s energy sector was heavily nationalized to curb what was perceived as excessive greed by international companies and to tackle sectoral corruption. This era saw the government supporting fossil fuel initiatives, with state-owned PEMEX receiving substantial bailouts and investments in new refineries, while renewable energy was largely neglected. For more details on AMLO’s energy policy, visit Shale Magazine.
However, with Claudia Sheinbaum taking office in 2024, the energy sector has begun to transform. Under her leadership, a new energy reform was introduced in March 2025, maintaining the state’s majority ownership in the electricity sector through the Federal Electricity Commission (CFE) while dissolving existing regulatory bodies to form the centralized National Energy Commission (CNE).
Sheinbaum’s administration is keen on harnessing Mexico’s solar and wind potential, aiming to add nearly 23 GW of new power capacity by 2030 through the Plan México development strategy. Her inauguration speech emphasized, “We are going to propel renewable energy in Mexico. The objective is that by 2030, 45 percent of the country’s energy will be powered by renewable sources.” Watch her full inauguration address here.
The plan involves investing over $22 billion to enhance CFE’s capabilities, while attracting $6 to $9 billion in private investment for clean energy projects, projecting an additional 6.4 GW to 9.5 GW capacity. The recent reform allows CFE and Pemex to form partnerships with private entities, provided the state maintains a majority stake. Explore the government’s plans here.
To facilitate these goals, the Energy Ministry called for private sector bids for 34 new power plants, spanning solar and wind projects across 20 states, slated for completion between 2027 and 2030. The full announcement can be found at Mexico Business News.
Several international firms have already pledged investments: Spain’s The Cox Group is channeling $4.2 billion into projects in Nuevo León, creating thousands of jobs while incorporating sustainable practices. Similarly, Germany’s RWE and Canada’s Recurrent Energy are advancing solar initiatives in various regions. Additional details on these projects are available at Mexico News Daily.
As Mexico opens its doors wider to private investment, projections by energy think tank Ember suggest potential growth to 36 GW of solar power and 30 GWh of battery storage. The shift indicates a significant move away from the previous nationalization approach, with private projects possibly contributing to nearly half of Mexico’s electricity generation.
Original Story at oilprice.com