By KELIN DILLON

According to new reports, Mexican President Claudia Sheinbaum Pardo (CSP) plans to invest $23 billion in Mexico’s state-owned energy company, the Federal Electricity Commission (CFE), during her six-year term.

In a recent announcement during the launch of public consultation tables for the National Development Plan 2025-2030, Juan José Vidal Amaro, the Technical Secretary and Undersecretary of Hydrocarbons at the Secretariat of Energy (Sener), outlined a substantial initiative aimed at expanding Mexico’s electrical system. 

This ambitious plan envisions a significant investment of up to $12 billion to increase Mexico’s clean energy capacity, which starkly contrasts with the energy policies of Sheinbaum’s predecessor, President Andrés Manuel López Obrador.

“The state is reclaiming its leadership in the planning of the electrical sector,” Vidal said at the time.

Vidal emphasized that the development of mixed energy projects is crucial for facilitating a successful energy transition and benefits the nation by sharing both risks and rewards. This approach is intended to ensure that the transition proceeds as a gradual and sustainable process.

In particular, from 2024 to 2030, the CFE is expected to invest around $12 billion in building new generation capacity, contributing to an overall projected investment of $23 billion in the sector.

Despite the focus on clean energy, Vidal acknowledged the continued necessity of fossil fuels for maintaining the reliability of the energy system and stressed the importance of ongoing investment in this area to ensure energy security.

While specific figures related to fossil fuel investment were not disclosed, Vidal mentioned that starting in 2025, state-owned oil company Petróleos Mexicanos (Pemex) would adopt a differentiated tax regime, paying a single Welfare Right to protect public finances and enhance the company’s income stability.

“We will roll out a business plan that targets multiple areas, including debt refinancing, a cash flow release strategy, and an austerity program to direct resources toward exploration, production, and new clean energy projects,” Vidal explained.

He further highlighted plans to bolster exploration efforts to restore sufficient reserves over the next decade, with a production goal of 5 billion cubic feet of natural gas per day. 

Additionally, efforts will be made to consolidate oil refining capabilities to achieve greater national self-sufficiency.