SENER Published Updated Transition Strategy

SENER announced a development in Mexico's commitment to sustainable energy. Published in the Official Gazette (DOF), the updated Transition Strategy outlines the nation's path toward cleaner technologies and fuels. With a focus on promoting energy efficiency and reducing reliance on fossil fuels, this strategy plays a pivotal role in Mexico's response to climate change.

Since the enactment of the Energy Transition Law (LTE) in 2015, the Transition Strategy has evolved into a guiding force for Mexico's national policy on clean energy, sustainable energy utilization, and enhancing the electrical industry in the medium and long term. This comprehensive strategy aims to establish goals and a roadmap for cleaner technologies and fuels, drive down emissions in the electrical industry, and decrease dependence on fossil fuels, all within the framework of economic viability.

In 2020, under the current administration, SENER released the strategy in compliance with the LTE, emphasizing specific targets for clean energy and energy efficiency. The LTE mandates the strategy to set goals for electricity consumption, incorporating energy efficiency and an increasing proportion of clean energy generation, all economically viable. It also aims for electricity generation from clean sources to meet levels specified in the General Law on Climate Change.

The strategy adopts a forward-looking approach, outlining 30 and 15-year goals for clean energy and energy efficiency, respectively. These scenarios account for technological changes, renewable integration, and advancements in energy efficiency. Complying with regulatory norms, the LTE anticipates updates every three years, considering changes in technical, economic, environmental, and social conditions. The current update, supported by the National Commission for Efficient Energy Use (CONUEE), reflects three years of evolution since the original publication.

Coordinated institutional efforts involved key players in the energy sector, including CRE, CFE, the National Energy Control Center (CENACE), and the National Institute of Ecology and Climate Change (INECC). This collaborative process resulted a document addressing clean energy and energy efficiency goals, accompanied by a thorough diagnosis of the electrical industry, final energy consumption, hurdles to clean energy development, environmental pollution, and fossil fuel dependence.

Electricity is a primary input for carrying out productive, transformative, and service-related activities in the country, making it an indispensable commodity for consumers toward national progress. This positions the electricity sector as a direct promoter of economic and social development, turning the National Electric System (SEN) into a central element in the country's energy transition.

Electricity has become the second most important and widely used energy source across consumption sectors, including transportation, industrial, residential, commercial-services, and agriculture. According to data from the National Energy Balance (BNE) by SENER, in 2016, electricity supplied 17.64% of the total energy in the country's final consumption sectors. By 2021, its contribution as an energy source increased to 19.59%.

The updated strategy identifies 195 action items related to energy efficiency and clean energy. A meticulous review concluded that 120 lines remain unchanged, 75 need updates, and 7 new proposals emerged, focusing on electromobility, solar and wind energy storage, and innovative technologies for wind and solar energy.

The Technical Review and Evaluation Group (GTRE) assessed activities between 2020 and 2022, identifying barriers and opportunities by area and technology. Specific recommendations target efficiency in transportation, industry, buildings, municipal public services, and agroindustry. In the realm of clean energy, there is an emphasis on updating goals and accelerating the expansion of renewable non-conventional electricity generation.

“By using an energy mix with a sustainable approach, we can significantly reduce greenhouse gas emissions and move toward a more sustainable and resilient future as well as provide economic benefits, such as job creation in the renewable energy sector and reduced energy costs in the long term. We have a long road ahead of us, which will require us to continue to evaluate the potential of renewable resources, work on the regulatory and political framework, and develop infrastructure, among other aspects that will allow us to implement these alternatives to satisfy our consumption needs,” wrote Ana Laura Ludlow, Vice President and Chief of Government Affairs and Sustainability, Engie Mexico, for MBN.