Mexico Must Invest US$60 Billion for 35 Percent Clean Energy Goal

During the Forbes Green Economy and Sustainable Development Forum, Gerardo Pandal, Founder, the Climate Reality Project Mexico, said that to address climate change in the coming years, Mexico must boost renewable energy production. The country will have to invest US$60 billion to reach its goal of producing 35 percent of the electricity with clean energy by 2050.

Pandal highlighted that clean energy has become increasingly accessible in recent years due to the drop in its costs. Twenty years ago, 1MW of wind energy cost US$2.5 million, now it is less than US$1 million. “In energy production, 1 MW/h with fossil fuels costs MX$2,000 (US$102), compared to an average of MX$500 (US$25) with renewables. It makes sense in terms of economics,” he said.

Alberto Escofet, Vice President, the Mexican Hydrogen Association (AMH2) said that even though humanity will continue to use fossil fuels as the energy transition develops, reliable and affordable energy efficiency measures can be applied such as improving roads and making public transport more efficient. This, in turn, would reduce the high volume of polluting gasses generated by traffic in big cities like Mexico City.

According to Pandal, Mexico will need to install around 67GW of clean energy and invest billions if it is to reach its 35 percent clean energy goal. He stressed that besides environmental benefits, enhancing the national power-producing portfolio will also detonate the economy. "The transition will create around 200,000 jobs and increase Mexico’s GDP by US$30 billion. From every point of view, it makes sense to invest in renewable energy,” he said.

Furthermore, Pandal pointed out that installing wind and solar farms alone is not enough, but it is just as important to distribute this energy efficiently with a robust grid. “It is important to transport and distribute energy efficiently. In Mexico, we have about 800,000km of transmission networks and about 900,000km of distribution networks, which results in a growth of just 5 percent compared to what existed in 2017,” he said.

For Escofet, early education is another essential factor that needs to be addressed urgently, so that future generations will have a different mentality regarding energy and make better decisions when they come of age.

"The transition requires synergy and cooperation... It is not just replacing old plants with renewable power infrastructure. We have to make systemic interventions and move several axes at the same time. We need an awakening of ecological awareness to advance to a future of greater sustainability," Pandal stated.