CANACINTRA Calls for Stronger Energy Infrastructure

Ensuring a reliable electricity supply is crucial for attracting new investments, emphasized Esaú Magallanes, President, National Chamber of the Transformation Industry (CANACINTRA), Queretaro Chapter. Companies are opting to purchase power plants to secure energy for their operations. However, this approach can lead to higher production costs. 

Magallanes stressed the need to strengthen energy distribution infrastructure, warning that inadequate infrastructure could hinder future investment projects. "All companies that arrive need reliable energy, either through substations or agreements with CFE. This is a federal matter. Companies setting up operations need a guaranteed energy supply," he said.

Although this issue has not significantly limited investments in the state, Magallanes urges the development of energy projects to prevent further issues. He called on the next federal administration to prioritize a comprehensive energy development policy.

Magallanes reports that the industry has experienced disruptions in electricity supply, particularly in June, when increased outages led to monthly productivity drops of 2-3% for some companies, and up to 8% in more severe cases, especially in sectors like food production. Given these challenges, some companies have opted to buy their own power plants to support operations, though this raises production costs. CANACINTRA has urged the next government to create policies that allow businesses to develop their own energy generation systems, such as solar panels or wind power.

The Mexican Institute for Competitiveness (IMCO)  highlights that the country has faced blackouts in various regions, indicating difficulties in meeting growing energy demand. The study urges the incoming administration to invest in electricity generation capacity and power grids. The demand for electricity is growing faster than investment in these areas, making it crucial to ensure energy security in Mexico, points out the institute

IMCO also emphasizes that this is not only a matter of welfare but also of competitiveness, development, environment, and national security. The institute proposes ensuring the independence of regulators from both government and private influences, allowing CFE to partner with private companies for generation projects, and strengthening state energy agencies to promote investment in electricity generation at the local level.

CFE plans to allocate approximately MX$2.903 billion (US$170.76 million) between 2024 and 2026 for maintenance work and the acquisition of operational vehicles to service the country's electrical transmission lines to respond to these challenges. Héctor Lizárraga, Director General, CFE Transmisión, stated that MX$969 million will be invested in maintaining 399 existing transmission lines across all 32 states of the country. Additionally, MX$970 million will be allocated for the maintenance of 678 sub-transmission lines nationwide over the same period.