Mexico’s Green Energy Push Is Finally Gaining Momentum

After a delayed start under the previous government, Mexico is now well on its way to undergoing a green transition. President Claudia Sheinbaum has launched an energy reform that opens Mexico’s energy sector to greater private investment and focuses on expanding the country’s renewable energy sector. Meanwhile, the approval of several solar and wind projects demonstrates the government’s commitment to the accelerated deployment of clean energy.In February, Sheinbaum launched Mexico’s strategic energy transition roadmap, which includes achieving oil production of 1.8 million bpd and deploying a $43.6 billion investment package. The government aims to add more than 32 GW of new electrical generation capacity by 2030, at least 70 per cent of which should come from renewable sources.During the announcement, Sheinbaum stated, “Mexico not only has oil: it has sun and wind, clean energies that allow for fewer environmental impacts. We are working on the energy transition: moving toward greater participation of renewable energy sources in the electricity we consume. And that is the most important objective between now and 2030.”The roadmap includes renewable energy-specific targets, including increasing photovoltaic generation by 140 per cent, geothermal by 90 per cent, wind energy by 70 per cent, and hydroelectric energy – through the maintenance of existing plants – by 18 per cent. The government aims to increase the share of renewable energy in the electricity mix from 24 per cent to 38 per cent by 2030.Achieving these goals will require a significant acceleration in the deployment of clean energy sources, particularly compared with previous years, when foreign investment in renewables was highly restricted. Between 2018 and 2024, former Mexican President Andrés Manuel López Obrador (AMLO) pushed for greater nationalisation, citing greedy international energy companies and sectoral corruption as reasons for the move. This decision was widely criticised for deterring investment in the energy sector and delaying Mexico’s green transition.However, AMLO’s successor, President Sheinbaum, has gone in a different direction. During her electoral campaign, Sheinbaum stated that she planned to spend at least $13.6 billion on renewables. Once in power, Sheinbaum announced that private companies would be permitted to add up to 9.6 GW of renewable capacity by 2030 via a new framework that allows 46 per cent of electricity generation to come from private investments – with the rest being operated by the state-owned electricity company CFE – marking a shift away from AMLO’s strict energy nationalisation strategy.Mexico is now welcoming investment in renewable energy projects, particularly in solar power. The country’s installed photovoltaic capacity is projected to more than triple by 2035, to 37.8 GW, growing at a compound annual growth rate of roughly 10.7 per cent between 2024 and 2035. A 2025 report from the thinktank Ember Energy suggests that Mexico has favourable climatic conditions for solar energy, which could supply close to 90 per cent of national electricity demand if exploited. However, solar power contributed just 6.6 per cent of Mexico’s electricity generation in 2023.To date, Mexico’s largest solar farm is located in the city of Puerto Peñasco in the northern state of Sonora. Phase one of four was completed in April 2023 and provides 120 MW of clean energy, while phase two, launched in September 2024, added 300 MW. The development of phase three is currently underway. Puerto Peñasco is expected to have 1 GW of installed capacity and 246 MW of battery storage once complete, making it the largest solar power plant in the Americas and the fifth-largest worldwide.In August, the Danish energy infrastructure investor Copenhagen Infrastructure Partners (CIP) announced it had reached a final investment decision for the 420 MW solar-plus-storage La Esperanza Solar project, the company’s first investment in Mexico to reach financial close, representing the firm’s growing renewables portfolio in Latin America.Construction is currently underway on La Esperanza in the southeastern Mexican state of Campeche, on the Yucatán Peninsula. The project is expected to come online in 2028 and will incorporate 150 MW of battery storage. Project funding comprises approximately $510 million in debt facilities provided by a consortium, with BNP Paribas, JPMorgan Chase Bank, Natixis CIB, Santander, and Scotiabank.Mexico is also home to 76 wind farms across 16 states, with an installed capacity of 8,131 MW and over 3,300 wind turbines. The sector provides power for as many as 12.1 million households and supports over 10,000 jobs. Mexico is expected to attract between $4 billion and $5 billion of investment in wind energy by 2030, with 2,159 MW of new installed capacity, according to estimates from the National Energy Control Centre, the National Energy Commission, and the Mexican Wind Energy Association.After a stalled start, the Mexican government is supporting the accelerated rollout of renewable energy projects to help achieve its green transition aims. This is being supported by the establishment of favourable policies and energy reforms, and greater openness to private investment, which has led to the launch of several new green energy projects in recent years.By Felicity Bradstock for Oilprice.comMore Top Reads From Oilprice.comAramco Finds a New Way to Keep Saudi Crude Flowing to ChinaMIT Uses AI to Challenge a Century-Old Process for Mass Ammonia ProductionQatar and Kuwait Restore 70% of Pre-War Oil Exports Through Hormuz