Mexico to court private investment in power Sector to support green energy

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🗞️ Driving the news: Mexican President Claudia Sheinbaum's new electricity plan aims to balance state control with increased renewable energy, cautiously inviting private investment
• The state-owned CFE is set to supply 54% of the country’s electricity, leaving 46% open for private sector involvement

🔭 The context: While former President López Obrador limited private involvement in Mexico's energy sector, Sheinbaum’s administration acknowledges the need for private investments in renewables to meet Mexico’s growing energy demands
• This policy shift is crucial, as industrial growth linked to nearshoring will require significant new energy capacity

🌍 Why it matters for the planet: Prioritizing renewables within a predominantly state-led model could enable Mexico to meet its sustainability goals, but legal uncertainty—especially around energy dispatch rules—may still discourage private sector involvement in renewable projects

⏭️ What's next: Key secondary laws to be introduced in 2025 will clarify how CFE and private providers interact, especially regarding energy dispatch rules that give CFE priority over other producers

💬 One quote: “It ticks the boxes in terms of the key areas that Mexico needs, not just over the next six-year term, but to even keep up” – Robert da Silva Ashley, DLA Piper

📈 One stat: CFE plans to invest $23.4 billion by 2030, with $12.3 billion allocated to add 13,024 MW of generating capacity

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