Energy Infrastructure Investment Opportunities in the South

Southern Mexico is emerging as a key focus area for national energy development, but persistent infrastructure gaps continue to pose barriers for investment and industrialization. Plan México aims to boost this region with infrastructure and talent development to reach a 27,000MW goal by 2030. 

“Campeche has complied with the technical and legal requirements to be designated a development hub. The main challenge is infrastructure and ensuring access to renewable energy and natural gas,” says Carlos Adrián García, Director General of the Energy Agency, State of Campeche. He noted that recent milestones, such as the signing of the Silvaplaya port dredging project reflect a shift toward enabling infrastructure that can support industrial and residential demand.

Southern states such as Campeche, Yucatan, and Oaxaca remain disconnected from national energy corridors. Limited transmission capacity, high reliance on fossil fuels, and weak connectivity increase costs and reduce reliability for businesses and residents. “We need to stop seeing Campeche solely as an extractive region,” García says, noting the state’s potential to diversify through agribusiness, industrial logistics, and electrified mobility initiatives.

Leonardo Beltrán, Non-Resident Fellow, Institute of the Americas, addressed the need for cross-sector coordination. “There is an opportunity in the South-Southeast within the framework of Plan México to involve both the public and private sectors. Consolidating Mexico’s leadership in clean energy will require clearer roadmaps for how these development hubs will access and distribute energy,” he says.

Projects under discussion include electrification for industrial parks, distributed generation for rural zones, and natural gas infrastructure extensions. According to García, Campeche is preparing for future demand by developing gas distribution lines and power corridors. “The Lerma thermoelectric plant will use aeroderivative turbine technology, while a 100% electric light rail system is under development to connect key urban areas,” he noted.

“We are moving slowly, but we are moving,” says Beatriz Marcelino, President, ADEE. “The private sector is starting to participate in industrial development projects. “There is strong opportunity for investment in Oaxaca, Yucatan, and Campeche, especially in sustainable industrial parks with water treatment, circular economy practices, and energy solutions.”

Despite the momentum, regulatory and logistical challenges remain, says Beltrán. Complex permitting, social resistance, and fragmented coordination among federal and state actors hinder progress. García explains that successful deployment requires collaboration across southern states. “If we do not act as a bloc, we will not reach the 27,000MW of renewable energy by 2030 under Plan México.”

Another pressing issue is the lack of skilled labor. Marcelino pointed to a shortage of trained workers and local suppliers. “We developed 33 local companies as providers in coordination with project operators, but there is still a gap in technical workforce and supplier development,” she says. Strengthening talent development is essential for consolidating a long-term energy system in the region, Beltrán adds.

“There are natural resources, there is land, and there is technical planning. What we need now is the willingness to invest,” García says.