Mexico’s Renewable Energy Revival Sparks $4.75 Billion Investment Wave
Canada Clears Path for West Coast Oil Pipeline Build Felicity Bradstock is a freelance writer specialising in Energy and Finance.
She has a Master’s in International Development from the University of Birmingham, UK.
After years of delays and restrictions to private investment, Mexico’s renewable energy sector is expected to undergo a transformation as President Claudia Sheinbaum encourages greater private sector participation to expand the country’s energy sector.
Solar and wind energy will be a major focus, thanks to Mexico’s favourable climatic conditions, which will go hand in hand with the expansion of the country’s transmission network.
In March 2025, President Sheinbaum announced a newNational Energy Reformthat opened Mexico to greater private participation and encouraged the growth of the country’s renewable energy capacity.
Under the reform, at least 54 percent of the national grid’s electricity must be generated by the state-owned Federal Electricity Commission (CFE), with the remaining 46 percent available for private sector producers.
The reform dissolved Mexico’s independent energy regulators – the National Hydrocarbons Commission (CNH) and the Energy Regulatory Commission (CRE) – replacing them with a centralised National Energy Commission (CNE).
The reform aligns with the Sheinbaum government’s national Plan México investment strategy, which aims to add 22 GW of new power generation capacity by 2030, as well as deliver a portfolio of 100 transmission and distribution projects.
The government also hopes to increase the share of clean energy to 40 percent by 2030, up from around 22 percent at present.
The reform introduces greater opportunities for private investment in solar, wind, geothermal, and energy storage technologies, alongside smart grid and industrial efficiency solutions.
The introduction of the new rules marks a U-turn from former-President Andrés Manuel López Obrador’s policy of energy nationalisation, which waswidelycriticised for its strong emphasis on fossil fuels and disregard for the potential for private investment to expand the sector.
In December, Mexico’s Energy Minister Luz Elena Gonzálezannouncedthat private companies planned to invest $4.75 billion to build 20 renewable energy projects in 11 Mexican states, adding 3.32 GW of electricity generation capacity and 1.48 GW of storage capacity.
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