Mexico’s surge in private energy investment lagging on renewables
Mexico has seen an increase of $58 billion in private energy investment but renewable energy is still vastly underrepresented.
Two news sources from Mexico expose the duality in the energy reform currently happening in the country.
From one side and according to a recent report, the energy sector has seen a huge increase in investment, specially the private sector since it has invested USD $58 billion until January 2015 amounting to 40,000 MW of new power generation. This is great news since this means that the liberalisation of the energy sector will increase competition and logically energy prices should fall while adding more supply fostering economic growth.
On the other hand, the vast majority of new power created is based on fossil fuels and despite the massive potential for renewables in Mexico, they represent a meager 5% of the total energy mix. Solar is vastly untapped alongside with geothermal. The new energy reform is helping boost new renewable energy generation yet their growth and representativeness is still too small.