Challenges and Opportunities in Sheinbaum’s Energy Policy

Rolando Fuentes

The strategic direction proposed by the Sheinbaum administration presents opportunities and challenges. While its emphasis on environmental factors, the energy transition, and renewable energy is positive, the plan’s heavy reliance on CFE, the artificial limitation of renewable energy capacity, and the overall absence of a well-defined, economically efficient market design are concerning.

The deployment of solar panels in northern Mexico is a beneficial policy that should be supported and financed through strategic subsidies. However, the proposed 54%–46% split between public and private sectors lacks economic soundness and risks stifling competitive dynamics essential for growth. Also, capping renewable energy capacity threatens progress toward climate objectives and undermines potential economic growth arising from a robust renewable energy sector.

As stakeholders navigate these critical decisions, focusing on transparent, economically viable, and environmentally supportive policies will be vital in steering Mexico toward a sustainable and vibrant electricity sector.

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