Reform meets opposition
Since President Andrés Manuel López Obrador’s election at the end of 2018, renewable energy in Mexico has faced an uncertain regulatory environment. The current government is focused on restoring the power and influence of Mexico’s state-owned energy companies. But it is now at a crossroads, as the previous administration aimed to open the segment up to foreign investment. Maria Chea of IHS Markit examines the policy decisions the government has taken this year and how these have soured private investor sentiment. These changes will likely weigh on utility-scale PV procurement in the country through 2024.
Mexico’s former president, Enrique Peña Nieto, spearheaded a five-year-long process to reform the country’s energy sector in 2013. The reforms sought to end the dominance of state-owned entities and to open doors to investors. At the end of 2013, the Mexican Congress approved a constitutional reform that allowed private and foreign investment in the segment …
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