After several years of stagnation in Mexico’s renewable energy sector, the introduction of more favourable reforms alongside several new solar energy agreements suggests that the Latin American country is pursuing a more diversified energy mix. After several years of energy policy that focused on greater nationalisation, the door is once again open for private participation, which is expected to include the development of several green energy projects and attract investment from various firms worldwide. 

Under President Andrés Manuel López Obrador (AMLO), who led the Morena party from 2018 to 2024, Mexico’s energy sector underwent a significant nationalisation, during which time it became harder for private companies to participate in the industry. AMLO decided to nationalise Mexico’s energy sector, citing over-greedy international energy companies, sectoral corruption, and the need for enhanced national energy security.

During his presidency, AMLO supported fossil fuel expansion, bailing out the state-owned oil and gas company PEMEX several times, as well as investing heavily in the construction of major new refineries. Meanwhile, investments in green energy stagnated as AMLO did not prioritise renewable energy development at the national level or allow for investment from private companies.

Since President Claudia Sheinbaum came into office in 2024, Mexico’s energy sector has begun to undergo a transformation, following the introduction of a new energy reform in March 2025. Sheinbaum followed in AMLO’s footsteps by maintaining the national majority ownership of the electricity sector, meaning the Federal Electricity Commission (CFE) must provide at least 54 percent of the country’s electricity. The reform also disbanded the National Hydrocarbons Commission (CNH) and the Energy Regulatory Commission (CRE), replacing them with a centralised National Energy Commission (CNE).

While Mexico’s energy sector will continue to be dominated by state-owned companies, Sheinbaum has reopened opportunities for foreign investment in the sector. In her national economic development strategy, Plan México, Sheinbaum introduced the aim of adding almost 23 GW of new power generation capacity by 2030, as well as establishing 100 transmission and distribution projects.

During her electoral campaign, Sheinbaum stated her commitment to renewable energy, emphasising the potential to develop Mexico’s abundant solar and wind resources. “We are going to propel renewable energy in Mexico,” Sheinbaum said during her inauguration. “The objective is that by 2030, 45 percent of the country’s energy will be powered by renewable sources.”

The government plans to invest over $22 billion by 2030 to expand CFE’s electricity generation and distribution. Meanwhile, Mexico aims to attract between $6 and $9 billion in private investment to establish between 6.4 GW and 9.5 GW of new clean-energy capacity by 2030. The new energy reform allows both CFE and Pemex to enter mixed contracts with private companies, so long as they hold a majority share of the project.

In October, Mexico’s Energy Ministry invited private companies to participate in the construction of 34 new power plants to accelerate the expansion of the country’s electricity capacity. The projects include 23 solar photovoltaic and 11 wind power plants across 20 states. Operations are scheduled to commence between 2027 and 2030. Once completed, the facilities are expected to add 5.97 GW of installed capacity.

“The call is part of specific mechanisms to develop strategic and priority projects aligned with binding planning, ensuring an orderly and coherent approach to meeting the National Electric System’s capacity needs,” the Ministry’s announcement stated.

In late October, the Spanish clean energy firm The Cox Group announced an investment of $4.2 billion for new solar and wind farms in Mexico’s border state of Nuevo León. The projects will be developed in the state capital of Monterrey, as well as other municipalities, and are expected to support the creation of 4,000 temporary jobs and 250 permanent positions. The Cox Group and the state government are developing a comprehensive strategy that includes water treatment and reuse, gas cogeneration, and energy efficiency.

In November, the German utility RWE announced plans to launch solar projects in Mexico. RWE’s subsidiary Oyamel Recursos Ambientales is developing a 120 MW PV plant in Veracruz, while its Biznaga subsidiary aims to build the 90 MW Cerro Pelón PV plant in Jalisco. Meanwhile, Canadian Solar’s Recurrent Energy hopes to get approval for a $63 million solar plant in Zacatecas. Spain’s Global Dominion Access and Canadian Solar also submitted environmental permit requests to develop solar operations, while Iberdrola announced plans to develop two solar projects totalling 535 MW in Mexico.

A recent report by the energy think tank Ember forecast that private investment and energy storage in Mexico could grow to as much as 36 GW of solar power and 30 GWh of battery storage in the coming years, owing to a greater openness to private participation in Mexico’s energy sector. As much as 46 percent of the country’s electricity generation could come from private projects, suggesting the beginning of a shift away from nationalisation.

By Felicity Bradstock for Oilprice.com

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After several years of stagnation in Mexico’s renewable energy sector, the introduction of more favourable reforms alongside several new solar energy agreements suggests that the Latin American country is pursuing a more diversified energy mix. After several years of energy policy that focused on greater nationalisation, the door is once again open for private participation, which is expected to include the development of several green energy projects and attract investment from various firms worldwide. 

Under President Andrés Manuel López Obrador (AMLO), who led the Morena party from 2018 to 2024, Mexico’s energy sector underwent a significant nationalisation, during which time it became harder for private companies to participate in the industry. AMLO decided to nationalise Mexico’s energy sector, citing over-greedy international energy companies, sectoral corruption, and the need for enhanced national energy security.

During his presidency, AMLO supported fossil fuel expansion, bailing out the state-owned oil and gas company PEMEX several times, as well as investing heavily in the construction of major new refineries. Meanwhile, investments in green energy stagnated as AMLO did not prioritise renewable energy development at the national level or allow for investment from private companies.

Since President Claudia Sheinbaum came into office in 2024, Mexico’s energy sector has begun to undergo a transformation, following the introduction of a new energy reform in March 2025. Sheinbaum followed in AMLO’s footsteps by maintaining the national majority ownership of the electricity sector, meaning the Federal Electricity Commission (CFE) must provide at least 54 percent of the country’s electricity. The reform also disbanded the National Hydrocarbons Commission (CNH) and the Energy Regulatory Commission (CRE), replacing them with a centralised National Energy Commission (CNE).

While Mexico’s energy sector will continue to be dominated by state-owned companies, Sheinbaum has reopened opportunities for foreign investment in the sector. In her national economic development strategy, Plan México, Sheinbaum introduced the aim of adding almost 23 GW of new power generation capacity by 2030, as well as establishing 100 transmission and distribution projects.

During her electoral campaign, Sheinbaum stated her commitment to renewable energy, emphasising the potential to develop Mexico’s abundant solar and wind resources. “We are going to propel renewable energy in Mexico,” Sheinbaum said during her inauguration. “The objective is that by 2030, 45 percent of the country’s energy will be powered by renewable sources.”

The government plans to invest over $22 billion by 2030 to expand CFE’s electricity generation and distribution. Meanwhile, Mexico aims to attract between $6 and $9 billion in private investment to establish between 6.4 GW and 9.5 GW of new clean-energy capacity by 2030. The new energy reform allows both CFE and Pemex to enter mixed contracts with private companies, so long as they hold a majority share of the project.

In October, Mexico’s Energy Ministry invited private companies to participate in the construction of 34 new power plants to accelerate the expansion of the country’s electricity capacity. The projects include 23 solar photovoltaic and 11 wind power plants across 20 states. Operations are scheduled to commence between 2027 and 2030. Once completed, the facilities are expected to add 5.97 GW of installed capacity.

“The call is part of specific mechanisms to develop strategic and priority projects aligned with binding planning, ensuring an orderly and coherent approach to meeting the National Electric System’s capacity needs,” the Ministry’s announcement stated.

In late October, the Spanish clean energy firm The Cox Group announced an investment of $4.2 billion for new solar and wind farms in Mexico’s border state of Nuevo León. The projects will be developed in the state capital of Monterrey, as well as other municipalities, and are expected to support the creation of 4,000 temporary jobs and 250 permanent positions. The Cox Group and the state government are developing a comprehensive strategy that includes water treatment and reuse, gas cogeneration, and energy efficiency.

In November, the German utility RWE announced plans to launch solar projects in Mexico. RWE’s subsidiary Oyamel Recursos Ambientales is developing a 120 MW PV plant in Veracruz, while its Biznaga subsidiary aims to build the 90 MW Cerro Pelón PV plant in Jalisco. Meanwhile, Canadian Solar’s Recurrent Energy hopes to get approval for a $63 million solar plant in Zacatecas. Spain’s Global Dominion Access and Canadian Solar also submitted environmental permit requests to develop solar operations, while Iberdrola announced plans to develop two solar projects totalling 535 MW in Mexico.

A recent report by the energy think tank Ember forecast that private investment and energy storage in Mexico could grow to as much as 36 GW of solar power and 30 GWh of battery storage in the coming years, owing to a greater openness to private participation in Mexico’s energy sector. As much as 46 percent of the country’s electricity generation could come from private projects, suggesting the beginning of a shift away from nationalisation.

By Felicity Bradstock for Oilprice.com

More Top Reads From Oilprice.com

• ExxonMobil Prepares to Permanently Close Singapore Petrochemical Unit
• UK Regulator Greenlights Massive $37 Billion Energy Grid Overhaul
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