Legal Certainty, Energy Availability Could Hurt Nearshoring

The biggest risks that could limit nearshoring include the lack of energy infrastructure and legal certainty. In addition to energy availability, companies have expressed concerns about the recent reform to the law of amparos.

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North of Mexico Reports Less Investments, Amparo Reforms Increase Tensions

Investment absorption for industrial warehouses in the northwest region of Mexico dropped by 53% annually in 1Q24, per Datoz. Energy scarcity, notably in Ciudad Juarez, Chihuahua, contributes to this decline.

The reduction in investments due to lack of energy access adds to concerns regarding the reform to the amparo mechanism, which creates more uncertainty and could drive investments away from the country.

Transmission Network Reaches 110,696km

As of March 31, 2024, the infrastructure of the electrical transmission sector consisted of 110,696km of lines and 2,311 substations, according to CFE.

The commission adds that the Availability Index of the National Transmission Network (RNT) reached 99.54%, surpassing the minimum required value.

SENER Contemplates Combined Cycles to Generate Electricity

SENER plans to combine natural gas and hydrogen in combined cycles to generate electricity, projecting that by 2037, 4% of the country's electricity generation will come from this combination. The conversion of conventional combined cycle plants is expected to integrate 39,658MW of new installed capacity between 2027 and 2037.

G7 Nations Agree on Coal Phase-Out by 2035

Energy ministers from the G7 reached an agreement to eliminate the use of coal in power generation by the first half of the next decade. The move represents a significant step toward reducing reliance on fossil fuels, in line with global efforts to mitigate climate change.