Grid crunch: As AMLO enters last year in office, where next for Mexican energy?

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Mexico’s natural gas demand is set to stay robust as state-owned utility CFE increases its market share and focuses on expanding its gas-fired capacity. Also, a slowdown in private investment and a shortfall of transmission infrastructure hamper the deployment of renewables, while the uptake of grid-scale batteries is held back by a lack of regulation. With presidential elections set to be held in 2024, the leading contenders have yet to pledge any wholesale changes to energy policy. However, the rising debt of NOC Pemex and the scale of investment required to upgrade the power grid could compel Mexico’s next president to take some steps to open up the energy sector to more private investment.

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