Energy Availability Threats Nearshoring

Power supply challenges have hindered the construction of industrial parks in Mexico. High demand for industrial areas and energy availability remain the main concerns. Meanwhile, CENACE has decided to stop disclosing information on emergencies in the National Electric System (SEN).

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Power Supply Challenges Hinder Mexico's Industrial Growth
The construction of industrial parks in Mexico has begun to slow down due to high demand for industrial areas from companies seeking to take advantage of nearshoring, which is also exceeding the country's electricity generation and distribution capacity, says Tonatiuh Salinas, President of the Investment Promotion and Attraction Committee, Mexican Business Council for Foreign Trade (COMCE).

Government Will No Longer Disclose SEN Emergency Alerts
The Mexican government will no longer disclose information about emergencies in the SEN to the public due to national security reasons starting July 4, 2024, as warned by CENACE. Details regarding the operational reserve margin - which represents the energy available as backup against potential demand fluctuations - were previously accessible to the public on CENACE’s website. 

CFE Profits to Subsidize Energy 
During a tour on July 5 in Baja California, the president assured that despite CFE not having increased electricity rates in real terms and maintaining subsidies for domestic consumption, the company managed to achieve significant profits. In 2023, CFE’s net profits amounted to MX$96.192 billion (US$5.63 billion). In terms of subsidies, additional breaks to these entities alone, excluding Baja California Sur, amounted to MX$2.691 billion that same year. With these figures, subsidies for the year would represent 2.8% of the utility’s profits. 

Global and Mexican Energy Outlook: 2022-2045 Insights
Between 2022 and 2045, renewable energies are expected to experience their highest growth rates globally. However, oil will continue to hold the largest share of the world's energy mix, according to OPEC. Renewable energies, particularly solar photovoltaic and wind power, are projected to see "strong growth," equivalent to 34.3MMboe, states the organization in its 2024 World Oil Outlook, which looks ahead to 2045.

Challenges and Strategies for Mexico's New Energy Chief
According to experts, one of the main challenges for Luz Elena González Escobar, incoming Minister of Energy, will be to establish a fresh dialogue with the private sector and demonstrate her ability to manage private sector participation in the industry. 

AMLO Denies Energy Crisis, Credits CFE
Andrés Manuel López Obrador emphasized on July 2 that there is no energy crisis in the country, thanks to CFE. He credited CFE technicians, and the investments made in infrastructure, for resolving the power outages that occurred in various parts of the country last May.

Empowering Communities: Sempra Foundation's Impact in 2023
Sempra Infraestructura Foundation released its 2023 Results Report where it highlights its efforts to achieve social transformation and shared prosperity by supporting organizations and programs that contribute to community development. Last year, the foundation invested MX$42.8 million (US$2.1 million) to benefit 72 high-impact social projects across 15 states in the country, with an emphasis on sustainable electrification, which accounted for 68% of the total resources.

Mexico Exhibits Signs of Climate Anxiety
The UN’s Climate Vote Report 2024 indicates that in eight out of 10 major oil-producing countries surveyed, most people support a swift energy transition, with Mexico ranking second at 83%. Among G20 countries, Mexico stands out with 95% of its population believing that nations should collaborate on climate issues, even if they disagree on other topics like trade or security, a sentiment shared globally at 84%.

CFE Deploys Resources for Hurricane Beryl
CFE announced that it had 2,209 electrical workers ready to address the impacts of Hurricane Beryl as it passed through the country. The national electric company also detailed that it prepared 360 cranes, 572 vehicles, 68 emergency generators, six all-terrain units, 27 mobile communication teams, and five helicopters positioned at strategic points.

Within 29 hours, CFE fully restored electrical power to the states affected by Hurricane Beryl. The company stayed in the affected region to handle individual reports, carry out permanent repairs, and reinforce the corresponding infrastructure.

Government Deploys Transmission Infrastructure: Sonora
President Andrés Manuel López Obrador announced that a new electrical transmission line is being laid to interconnect the state of Sonora with the Baja California Peninsula. "We are currently laying down the transmission line toward the border, toward Mexicali, where there previously was none," he stated during his Friday morning press conference.

ISO to Develop First International Net Zero Standard by COP30
The International Organization for Standardization (ISO) is developing its first international standard on net zero, set to launch at COP30 in November 2025. The new standard aims to provide a global solution for organizations transitioning to net zero emissions, offering clarity, comprehensive climate action requirements, and the potential for independent verification.

ENGIE Signs Agreement to Promote Biomethane Projects
ENGIE signed a collaboration agreement with the Nuevo Leon Renewable Energy Agency to promote biomethane projects, aiming at meeting the state's energy needs sustainably and efficiently. This strategic partnership underscores ENGIE's commitment to advancing renewable energy initiatives in the region.