Private Sector to Invest US$9 Billion in Renewable Energy

Private companies are expected to invest up to US$9 billion in renewable energy during this administration, according to Luz Elena González, Minister of Energy. This investment is set to increase the country’s installed capacity by 6,400-9,550MW, marking a significant boost in Mexico's renewable energy sector.

González highlighted that this growth would support the nation’s development, particularly by leveraging “development poles” and capitalizing on nearshoring opportunities. She emphasized, however, that these projects must prioritize local development, adhering to principles of justice, legality, and community support for landowners.

The planned investments come as part of the broader framework established by Mexico’s recent energy reform, which allows private companies to participate in 46% of the country’s electricity generation. González noted that these companies will be required to adhere to key provisions such as energy transition goals, compliance with the national grid code, and ensuring that 30% of generation capacity is backed by reserve power.

In addition to private sector contributions, CFE will invest US$23.4 billion over the term, with allocations of US$12.3 billion for electricity generation, US$7.5 billion for transmission, and US$3.6 billion for distribution infrastructure.

The reform also opens the door for long-term energy producers to deliver power and capacity to CFE, while introducing a mixed producer model where the government will maintain a 54% stake in investments. This change ensures that existing private generators can continue operating while adhering to Mexico’s evolving energy policy.

González Escobar concluded by outlining the four main goals of the National Strategy for the Electric Sector: strengthening sector planning, ensuring energy justice, creating a robust and reliable electrical system, and providing clear regulations to attract further private investment.