Analysis of the Energy Agenda 2030-2050

Mexico is currently navigating a complex landscape of energy and political transitions, where private sector investments play a crucial role in accelerating energy development. To tackle the most pressing energy challenges, the Mexican Energy Council (COMENER) conducted an extensive study with approximately 30 experts, aiming to create a strategic vision for 2030-2050. The organization's goal is to consolidate recommendations for the government's upcoming term and players in the energy industry, focusing on sustainability, energy security, and accessibility, explains COMENER President Juan Acra. 

“By promoting regional energy planning and development through decentralized public bodies, COMENER aims to boost decarbonization and attract investments,” he says.

COMENER is at the forefront of efforts to revitalize the nation’s energy sector. Established in 2015, COMENER is the premier business representation organization in Mexico’s energy industry, dedicated to ensuring that its members have access to key decision-makers, essential knowledge, information, and human capital necessary for effective energy project development.

To prevent stagnation, COMENER emphasizes the need for strategic development guidelines that transcend individual administration cycles. “Mexico has not had the development it could have over the past years, now there is great opportunity to contribute to the following steps to leverage on the opportunities Mexico has,” says Acra.

Building consensus among authorities, entrepreneurs, specialists, and social leaders is essential to make informed decisions that facilitate necessary projects. This unified approach aims to achieve energy sovereignty and deliver its anticipated benefits to the nation, explains Acra.

COMENER advocates for an alliance with the North American market through innovative and responsible initiatives that benefit the communities of the region. To facilitate industrial relocation processes like nearshoring, Mexico requires robust and reliable infrastructure. This includes the entire energy supply chain, from generation to transportation, storage, and distribution. Ensuring energy availability is paramount to support this infrastructure.

COMENER's strategic recommendation centers on the hydrocarbons sector, calling for a profound review of the economic model and the role of the oil and gas sector within the context of energy transition and climate action. This involves reformulating the sector's institutional design and determining the involvement of state-owned enterprises. A new institutional architecture and oil policy should integrate the three components of energy sustainability: energy security, social equity, and environmental impact mitigation.

PEMEX should be positioned as a key agent in sustainability and energy transition, industrialization, regional development, income improvement and redistribution, and scientific and technological research. COMENER believes that PEMEX must be endowed with genuine budgetary and managerial autonomy, as well as the operational flexibility necessary to act both domestically and internationally. “Many see PEMEX as a burden due to the financial aid it has had. However, the NOC is important for the sector and COMENER identifies an opportunity in rethinking its refining strategy and restructuring it to reverse the money it loses,” says Acra.

To optimize the oil and gas sector, COMENER recommends the creation of a specialized company for the natural gas value chain. This entity would be responsible for exploring and developing natural gas resources and reserves, aggregating volumes to facilitate commercialization. Additionally, renewing the regulatory framework to allow companies to request areas included in previous rounds but not awarded is crucial for further development, states Acra.

Beyond hydrocarbons, COMENER identifies biofuels as a sector with great potential, albeit still in preliminary stages. For the electrical sector, the organization supports sovereignty and energy security through the promotion of clean energies, CFE’s specialization, and institutional and regulatory strengthening. Addressing transmission and energy availability challenges is essential to attract investments. Energy efficiency is another critical area, where COMENER highlights the need for solid policies and regulations, education, technological innovation, financial incentives, and training programs. Hydrogen development is also featured prominently, with a call for a clear and robust roadmap to guide its growth.

Social impact is an overarching theme in all of COMENER’s recommendations. Ensuring that energy projects benefit communities and contribute to social equity is paramount. Additionally, Acra’s final recommendation focuses on regulatory bodies' crucial role in fostering healthy competition and autonomy in the sector. Promoting flexibility in resource management and encouraging dialogue among stakeholders are key to advancing Mexico's energy sector, he says.

“By fostering sustainability, energy security, and accessibility, and addressing key challenges through innovative strategies and collaborations, COMENER aims to propel Mexico toward a sustainable and efficient energy future,” says Acra.