Why this is important to Wisconsin businesses: As part of this investment, the country aims to increase the amount of clean energy it produces.

In the last 10 years, Mexico’s energy industry has grown at a compound annualized growth rate (CAGR) of 4.9 percent. As a point of reference, in the same period Mexico’s GDP has grown at a rate of 2.4 percent, and the growth rate of the industrial sector has been 1.6 percent. Although its growth is related to overall growth trends, the electricity industry grows at a faster rate than GDP and industrial activity, with smaller contractions during periods of recession. This is mainly due to the characteristics of electrical power consumption—a need that cannot be replaced.

Prior to energy reform, Mexico had a traditional model in which the Comision Federal de Electricidad (CFE) was responsible for developing all the activities of the industrial energy chain, from generation to delivery to end users. In January 2016, the (Secretary of Energy) published in the Official Gazette of the Federation (DOF) the terms to carry out the separation of the CFE. These provisions include the division of the commission into companies with activities that are carried out strictly independently, classified as follows:

  • Generation
  • Transmission
  • Distribution
  • Basic supply
  • Other supply
  • Provision of basic materials

During the next 15 years, it is projected that Mexico will need to invest $123.4 billion in electrical infrastructure to achieve the goals set by the government. Of the total investment, 75 percent, or $92.5 billion, will correspond to investments to generate infrastructure. Clean energy in Mexico generates 25 percent of electricity, a figure that must increase to 35 percent by 2024 to comply with the Climate Change Law approved in 2013. Clean energy sources are those that are extracted, processed and distributed with reduced environmental impacts, such as geothermal, solar, wind and hydroelectric power. According to the Mexico’s secretary of energy, the country has a total renewable energy use potential of 57 Gw by 2020.