By Fran García
Claudia Sheinbaum has an ambitious plan to invest $13.57 billion in new energy generation projects through 2030. This extensive program aims to significantly boost wind and solar power generation and modernize five hydroelectric plants. This initiative represents a substantial departure from the policies of current President Andres Manuel Lopez Obrador, who has prioritized strengthening the state oil company Pemex over renewable energy since taking office in late 2018.
Meanwhile, the Employers’ Confederation of the Mexican Republic (COPARMEX) has sounded the alarm on Mexico’s current energy crisis, attributing it to a severe lack of investment and disinterest in renewable energies and public-private collaborations. The core issue, according to COPARMEX’s leader José Medina Mora Icaza, is not the rising energy demand but the insufficient development of new generation power plants. This, coupled with minimal government investment in the transformation and transmission capacity by the CFE, has led to the current precarious state of the national energy system.
COPARMEX highlighted that the recent heatwave caused the National Electric System to reach its maximum demand, nearly consuming 48,472 Megawatts (MW) of electricity in one hour. The system’s Operating Reserve Margin, which is required to be at 6% for safe operation, recently plummeted to less than 3%. This dangerous drop has increased the risk of blackouts, which not only disrupt business operations but also pose significant threats to public safety during extreme weather conditions.
Adding to the complexity, the organization pointed out that the lack of transmission infrastructure is driving up energy prices in regions with capacity constraints. According to the National Electric System Development Program, out of 232 projects instructed by the Ministry of Energy, the CFE has only completed 9. COPARMEX believes that Mexico is missing the chance to capitalize on nearshoring opportunities to attract new companies and create jobs due to the evident shortage of electricity.
The current energy landscape presents a significant opportunity for startups like Niko, which are disrupting the solar energy industry in Mexico with innovative solutions. Niko and similar companies stand to benefit greatly from Sheinbaum’s ambitious plan, as increased investment in solar power generation could accelerate their growth and impact. By contributing to the renewable energy sector, these startups not only help alleviate the energy crisis but also position Mexico as a leader in sustainable energy solutions, creating new jobs and fostering economic growth.
For instance, Mexico’s residential solar market has grown substantially in recent years, despite the lack of supportive public policies.
