Initiated under President Enrique Pena Nieto, the Mexican electricity market allowed private industry to participate via long-term auctions. These auctions, enabling the CFE (Comisión Federal de Electricidad) to secure prices below 20 cents/kWh, were suspended in 2019 by the current president, Andrés Manuel López Obrador, as part of a nationalist policy to strengthen state-owned enterprises.
Gálvez’s commitment to renewable energies
In a debate with the other two candidates on April 28, Gálvez Ruiz affirmed his commitment to renewable energies, planning to use natural gas as a transition fuel. She promised that by 2030, half the energy produced in Mexico would be clean. Currently, around 70% of Mexico’s energy is generated from natural gas, mainly imported from the USA via pipelines.
Investment and modernization requirements
Gálvez Ruiz stressed the need to modernize the power grid, including investing $20 billion if she wins the election. This initiative is crucial because, under López Obrador, little transmission and distribution infrastructure has been built, while demand continues to grow.
Divergences with Claudia Sheinbaum
Unlike Claudia Sheinbaum, Morena’s leading candidate in the polls, who criticizes market liberalization for corruption and disorder, Gálvez Ruiz advocates a return to auctions to guarantee regularity and attract investment in the energy sector.
Xóchitl Gálvez Ruiz proposes an ambitious energy reform for Mexico, seeking to stimulate investment through policies that favor renewable energies and appropriate market regulation.
