In October 2024, Mexico marked a historic moment in its political landscape with Claudia Sheinbaum’s inauguration as the country’s first female president. As an excellent advocate of renewable energy, President Sheinbaum holds a doctorate in energy engineering. She pledged to accelerate Mexico’s energy transition. Her predecessor, Andrés Manuel López Obrador, had been a staunch supporter of fossil fuels, investing over $20 billion in new oil refineries while putting solar and wind projects on hold. This emphasis on traditional energy has led to the stagnation of Mexico's renewable energy industry. However, President Sheinbaum’s leadership is seen as a significant boost for Mexico’s green energy ambitions, paving the way for innovative policies that could reshape the nation’s energy landscape.
(Source: Mexico News Daily)
Recently, President Sheinbaum outlined her commitment to renewable energy, with the ambitious goal of increasing renewable energy’s share in total electricity generation to 45% by 2030. These days, she announced that in the coming days, the government will release an “ambitious energy transition program” aimed at reducing greenhouse gas emissions. Although the details are yet to be fully disclosed, her administration is likely to introduce measures that prioritize sustainable energy sources and significantly reduce the country’s reliance on fossil fuels, setting Mexico on a transformative path toward clean energy.
As part of her goals, President Sheinbaum aims to increase investment in solar, wind, hydroelectric, and geothermal energy over the next six years. With a favorable outlook on the growth potential of Mexico’s renewable energy market, the country may soon witness an expansion in renewable energy infrastructure. Additionally, her administration plans to enhance transmission networks, adding approximately 3,850 kilometers of transmission lines to boost the capacity and reliability of the national grid. Aware of the destructive impact of climate change on Mexico, Sheinbaum also announced a historic cap on oil production at 1.8 million barrels per day, a significant reduction from the ambitious target of 3 million barrels set during the 2013 energy reform. These policies are expected to bring several benefits, including environmental protection, energy security, and opportunities for investment in new technologies.
(Source: Sener)
Under President Sheinbaum’s leadership, the pace of Mexico’s energy transition is likely to accelerate. According to recent analysis by the business trade organization Coparmex, the Mexican power system requires an estimated $130 billion in new investments to meet the country’s growing demand from 2024 to 2030. Currently, Mexico’s energy sector faces various challenges, including some power outages. Under the previous government’s administration, the share of clean energy in the country’s electricity generation dropped significantly. According to SENER’s National Electric System Development Program (PRODESEN), clean electricity generation declined by 8.2% in 2023 to 85.5 GWh, reducing its share in total generation from 27.5% to 24.3%. This illustrates the considerable gap between the previous clean electricity generation and the new president’s ambitious 45% target.
As Mexico embarks on this transformative energy journey, the transformer market is expected to experience significant growth. With policies promoting renewable energy and an expanding electricity market, the demand for transformers will rise, creating substantial opportunities for both local and international companies. Although Mexico has seen considerable investment in industrial manufacturing over recent years, the current production capacity still falls short of market demand. Consequently, multinational transformer manufacturers are keen to establish or expand their presence in the country. Companies like ABB, Schneider, Siemens, and CEEG are known for their quality and competitive pricing, have already attracted substantial interest. In summary, the Mexican transformer industry shows promising growth potential, with the market projected to expand steadily as key players strengthen their position through technological innovation and strategic investments. This industry will be crucial in supporting Mexico’s renewable energy goals, ensuring a stable and reliable power grid as the nation embraces a sustainable future.