Mexico Energy

Chapter | Energy & Utilities from The Report: Mexico 2019

Mexico’s energy and utilities sector has benefitted from increased openness and competition brought about by the 2013 energy reform. Although recent...

In 2018 Mexico’s economy ranked second in Latin America and 15th in the world in terms of GDP, which totalled $1.22trn, according to the World Bank. In 2019 the newly elected President Andrés Manuel López Obrador has pushed ahead with efforts to meet his pledge to tackle corruption and implement austerity measures within the government, to reduce costs and curb excessive expenditures.

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While solar and wind are the dominant segments in the transition to renewables, a number of emerging markets are looking to geothermal sources as a way to meet future energy needs.

How are energy companies aligning their growth with environmental, social and governance (ESG) standards?

In early 2020 the global economy faced a historic oil price drop in conjunction with global restrictions that curtailed transport and economic activity – both of which depressed demand for hydrocarbons at the national and global level.

Following a coronavirus-related fall in crude prices, oil-producing nations have sought to calm global markets by announcing a significant production cut, with Mexico standing to benefit from a special dispensation in output after striking a deal with the US.

How do you assess the scope for renewable energy in Mexico, and what role can development banks play in developing this segment?

Reform has led to new opportunities in Mexico’s energy sector, especially in terms of renewable power generation. The country has launched three auctions for solar and wind projects in recent years, with the first held in early 2016. However, President Andrés Manuel López Obrador – known by his acronym AMLO and who came to office in December 2018 – is not expected to support...

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