Hacienda Underscores the Importance of Clean Energy

The Ministry of Finance and Public Credit (SHCP) highlighted the importance of reaching energy sovereignty by boosting the development of clean energy technologies such as lithium and green hydrogen. Likewise, the ministry recognized the value of these resources in the face of the growing electric automotive industry, in which Mexico is more than willing to participate. 

On March 31, 2023, SHCP handed the General Economic Policy Criteria for 2024 to the Congress of the Union. This document contains the federal government’s estimates on the macroeconomic framework and public finance targets for the closure of 2023 and the beginning of 2024. According to the report, in 2024 the allocated budget for the Ministry of Energy (SENER) will reach MX$372 million (US$20.5 million), which represents an increase of MX$17.2 million (US$956,975.9) in comparison to 2023.

On energy, SHCP stressed that to detonate economic growth it is necessary to achieve energy sovereignty through sustainable and diverse energy sources. To meet this goal, the ministry recalled the importance of the Sonora Plan to detonate the electric vehicle industry in the region. “Sonora has one of the largest lithium deposits in the world and a great potential to generate photovoltaic energy, which is demanded by companies that produce high value-added goods and want to settle in Mexico as part of the nearshoring process,” the document reads.

In this regard, the document underscored the amendments made to the Mining Law that will allow the Mexican government to coordinate the exploration and exploitation of lithium deposits located in Sonora. This aims to insert Mexico into electric mobility global value chains through the manufacture of electric vehicle batteries. Likewise, the government will also promote the vehicle assembly industry in the north of the country.

The Sonora Plan includes the development of five photovoltaic power plants with a combined generation capacity of 5GW, which is the equivalent of providing electric energy to 6.8 million Mexican households for a year.  “On the one hand, photovoltaic plants will ensure clean energy supply, in line with the energy policies of the arriving automotive companies in the north of the country. On the other hand, the integration of lithium processing toward batteries and assembly promotes new investments and technological exchanges not only in the state of Sonora, but as an added benefit, it boosts the production chain in other regions of the country," the document states.

Moreover, SHCP pointed out that during the North American Leaders’ Summit held in Mexico City at the beginning of 2023, the leaders agreed to develop a green hydrogen market through cooperation in research, development of safety standards and integration of clean transport corridors. "In addition to the above, a plan will be designed for the development of standards and installation of electric chargers along the border to start a transition in clean transboundary means of transport,” the document points out. 

The ministry reported that in regards to the Sonora Plan, the federal government inaugurated the first stage of the Puerto Peñasco photovoltaic plant in February 2023, which is projected to have a generation capacity equivalent to 1GW on an area of 2,000ha.