Mexico Embraces Renewable Energy as Green Transition Gains Momentum
Mexico is embarking on a significant transformation in its energy sector, as President Claudia Sheinbaum leads an ambitious energy reform to expand renewable energy initiatives. The country has opened its doors to private investments, marking a significant shift from previous policies and emphasizing solar and wind project approvals.
Earlier this year, President Sheinbaum unveiled a strategic energy transition roadmap for Mexico, which outlines plans to reach an oil production target of 1.8 million barrels per day (bpd) while also deploying $43.6 billion in investments. By 2030, Mexico aims to add over 32 gigawatts (GW) of new electricity generation capacity, with at least 70% of this capacity derived from renewable sources.
In a public statement, Sheinbaum highlighted Mexico’s diverse energy resources, stating, “Mexico not only has oil: it has sun and wind, clean energies that allow for fewer environmental impacts. We are working on the energy transition: moving toward greater participation of renewable energy sources in the electricity we consume. And that is the most important objective between now and 2030.” The roadmap sets specific renewable energy targets, aiming to boost photovoltaic generation by 140%, geothermal by 90%, wind energy by 70%, and hydroelectric energy by 18% by maintaining existing plants. This will increase the share of renewables in the electricity mix from 24% to 38% by 2030.
The new approach marks a departure from the policies of former Mexican President Andrés Manuel López Obrador (AMLO), who favored nationalization of the energy sector, restricting foreign investment. AMLO’s policies were widely criticized for deterring investment and delaying Mexico’s transition to green energy. In contrast, President Sheinbaum, during her campaign, promised to invest at least $13.6 billion in renewable energy. Under her leadership, private entities can now contribute up to 9.6 GW of renewable capacity by 2030, with private investments accounting for 46% of electricity generation, a shift from AMLO’s nationalization stance.
Mexico’s potential for solar energy is particularly promising, with its installed photovoltaic capacity expected to more than triple by 2035 to 37.8 GW, growing at approximately 10.7% annually from 2024 to 2035. Despite solar power contributing only 6.6% to the national electricity generation in 2023, a 2025 report by Ember Energy suggests that solar energy could potentially meet nearly 90% of Mexico’s electricity demand.
Currently, Mexico’s largest solar farm is in Puerto Peñasco, Sonora, where the first phase was completed in April 2023, adding 120 MW of clean energy, and a second phase launched in September 2024 increased capacity by another 300 MW. Upon completion, Puerto Peñasco will boast 1 GW of installed capacity and 246 MW of battery storage, making it the largest solar power plant in the Americas and the fifth-largest worldwide.
The expansion of solar projects in Mexico is further illustrated by the La Esperanza Solar project in Campeche, announced by the Danish energy investor Copenhagen Infrastructure Partners (CIP). This project, which is expected to become operational by 2028, will include 150 MW of battery storage, supported by approximately $510 million in debt facilities from a consortium of banks, including BNP Paribas and JPMorgan Chase.
Mexico’s wind energy sector is also thriving, with 76 wind farms across 16 states, producing 8,131 MW of electricity and powering around 12.1 million homes. The wind sector is projected to attract between $4 billion and $5 billion in investments by 2030, according to the National Energy Control Centre and the Mexican Wind Energy Association.
With an evolving policy framework and increased openness to private investment, Mexico is accelerating its renewable energy projects, setting the stage for a robust green transition. The government’s commitment to renewables is paving the way for significant advancements in the country’s energy landscape.
Original Story at finance.yahoo.com