In this publication, we discuss the first part of the National Energy Plan 2024-30 of President Claudia Sheinbaum (CS). On Wednesday, 6 November, in her announcement regarding Mexico's energy sector, CS committed to streamlining regulations for private investors and increasing funding for power generation and transmission projects. Details about CFE’s role were shared, with further information on Pemex to be announced this week.
The plan seeks to return control of the energy sector to the state, focusing on long-term strategies that empower both CFE and Pemex. It includes a substantial investment of USD23.4bn for CFE through 2030, with USD12.3bn allocated to generation, USD7.5bn to transmission, and USD3.6bn to distribution. In the realm of renewable energy, private companies are projected to contribute between 6,400 and 9,550 megawatts (MW) by 2030, requiring an estimated investment of USD6-9bn.
Continuing the policy established by former ex-President López Obrador, the plan confirms that CFE will be responsible for generating 54% of the country's electricity, while private companies manage the remaining 46%. To meet this target, the government envisions three models for private sector participation: The first model involves long-term contracts, under which private firms can bid to supply energy directly to CFE. The second model introduces the concept of “mixed producers,” allowing private entities to co-invest with CFE, which would contribute 54% of the investment; these arrangements would also operate through competitive bidding. The third model provides for private entities wishing to generate and sell energy on the open market. However, these participants must comply with network codes and maintain a 30% backup capacity to address potential intermittencies.