Xóchilt Gálvez Calls for More Openness in Energy Market

Xóchitl Gálvez, presidential candidate for the 2024 elections, articulated her openness to private sector investment in Mexico's energy sector and a commitment to bolstering renewable energies. As the López Obrador administration reaches its end, MORENA’s advances regarding its Fourth Transformation will be challenged by Gálvez’s more open approach. 

For the first time in the nation's history, two women, Claudia Sheinbaum and Xóchitl Gálvez, will be presidential candidates. Sheinbaum, the candidate of the ruling MORENA party, and Gálvez, representing the Frente Amplio por México coalition, are set to make this election a landmark event.

Claudia Sheinbaum, a scientist and academic with a background in energy, environment and sustainable development, was unveiled as MORENA's presidential candidate last week. Sheinbaum has previously served as Mexico City Mayor and her candidacy has drawn support from within MORENA and its allies. Meanwhile, Xóchitl Gálvez, a senator from the National Action Party (PAN), emerged as the main opposition candidate. Gálvez's nomination is particularly noteworthy, as she hails from an indigenous and economically disadvantaged background, connecting her with some of the poorest Mexicans. Her platform is centered around supporting businesses and industries, such as mining, that have faced obstacles due to President Andrés Manuel López Obrador's policies.

Regarding the state-owned oil company PEMEX, Gálvez emphasized her intention to reform the company without privatizing it. She drew parallels with Petrobras in Brazil, highlighting the need for private investment in Mexico's energy sector. Gálvez stressed the importance of investment in hydrogen and solar energy, considering them fundamental to Mexico's development. She criticized the current administration for what she perceives as a slowdown in the clean energy industry, excessive resource allocation to PEMEX and overspending on projects that have faced cost overruns and delays.

In contrast, Claudia Sheinbaum, the candidate of the ruling MORENA party, has expressed support for continuing with the current administration's agenda. Sheinbaum has authored numerous articles and books on energy, the environment and sustainable development. Her stance on energy policy includes backing an industry in which the state-owned energy producer, CFE, maintains a majority role.

With two highly accomplished women as the leading contenders, this election is poised to reshape Mexican politics and society in ways previously unseen. Furthermore, it signifies the growing role of women in Mexican politics, reflecting a broader global trend of increased female representation in leadership positions.

According to Alejandro Valerio, Founder, Valerio Consulting Group, Gálvez needs to have a compelling economic argument to sell, unless a major economic slump happens between now and June’s elections. “Gálvez might need to recalibrate her economic pitch, targeted to the middle class but without alienating the working class that vastly supports AMLO,” explains Valerio.