Plant Purchase Opens New Possibilities for the Energy Sector: AME

The Mexican Energy Association (AME) recognized the importance of the agreement reached between the Mexican government and Iberdrola as an opportunity to begin a new cooperation phase between public and private industries in Mexico’s energy sector. 

On April 4, 2023, President López Obrador announced the purchase of 13 power plants from Iberdrola for US$6 billion. The plants will be managed by the state utility CFE and their operation is expected to enhance generation capacity in the northeast of the country from 7% to 45%.

On March 11, 2023, AME issued a statement in which it recognized the constructive will of the Mexican government to reach an agreement with the Spanish company. Members of the association expressed their hope for this event to be a turning point in Mexican policy, in which private companies are welcome to contribute to the country’s energy sector. "AME celebrates the agreement announced by the government. Likewise, we hope this represents the beginning of a new stage in which the private sector is welcome to invest in the development of renewable energies in the country, under the supervision of the State," the statement reads. 

AME highlighted that public-private collaboration can benefit the economic and social development of the country. The association also stressed that the private sector could contribute to this new chapter in energy policy with experience, technological, financial and human resources to increase the country’s generation capacity. “This will also contribute to a reliable, accessible and sustainable electricity supply, which will attract investment and improve the competitiveness and efficiency of the national industry," AME said. 

Finally, AME reiterated its commitment to promote the development of an electricity sector based on legal certainty, one that will make it possible to take advantage of great opportunities offered by investment attraction and domestic market growth for the economic and social development of all Mexicans.

AME is formed by 17 associated companies and 11 affiliated companies. Members of the association account for more than 33GW of installed power generation capacity, equivalent to about 40% of the country’s capacity, and investments superior to US$25 billion. The association’s main duties focus on monitoring the market conditions of the different energy sectors, establishing communication channels with public sector organizations and entities to contribute to the electrical development of the country and generating discussion forums on new alternatives for the improvement of the different industries of the energy sector.