Sheinbaum’s Vision Regarding Private Investment in Energy

Presidential candidate Claudia Sheinbaum is contemplating the use of private funding to modernize and expand Mexico's electrical networks, as reported by Bloomberg Línea. This move would mark an important difference in her energy strategy compared to current president López Obrador.

In April 2024, Sheinbaum presented a plan to business leaders, proposing a US$13.6 billion investment in renewable energy and gas plants, alongside the addition of 3,850km of electrical transmission lines. Her strategy aims to bolster PEMEX while advancing Mexico's clean energy agenda. The plan is aimed at incorporating approximately 13.7GW of electricity to the grid by 2030.

Jorge Islas, Sheinbaum's energy advisor, explains that while CFE holds a monopoly on transmission and distribution, there are avenues for private sector involvement in financing large-scale energy transportation projects through specific financial mechanisms. He highlighted the importance of project quality in securing financing, advocating for collaboration with development banks and leveraging CFE instruments like Fiber E to ensure self-sustainability.

Islas outlined strategies for granting electricity generation permits to private entities, including options for isolated supply with or without connection to the national grid. He proposed expediting permit issuance for projects without grid connection and streamlining interconnection processes for nearshore projects, contingent upon grid viability assessments and optimal site selection.

In anticipation of Sheinbaum's potential presidency, Islas ruled out new fuel import permits and the possibility of new oil auctions.