Taking Mexico to full potential

The document examines Mexico's transition from a state-owned electricity system to a competitive wholesale market. It highlights the role of the 2013 reforms in reducing industrial electricity prices by shifting generation toward natural gas and renewables. The report outlines a planned $146 billion investment by 2029 to modernize generation and transmission and distribution networks, while providing strategic recommendations for policy-makers and regulators to ensure market stability and attract private capital.

• Mexico's 2013 electricity reforms aim to transition the sector from a state-owned system to a model allowing private investment and a competitive wholesale market, while maintaining the state utility CFE as a productive enterprise rather than privatizing it.
• High electricity costs have historically hindered Mexico's global competitiveness, particularly for energy-intensive goods; however, industrial rates dropped from being 77% higher than US rates in early 2014 to only 18% higher a year later.
• The reduction in electricity costs is largely attributed to CFE converting power plants from oil to natural gas, leveraging low-cost US shale gas resources.
• Mexico intends to increase its clean energy generation to 35% by 2024, up from 14% in 2013, utilizing clean energy certificates to encourage the development of wind, solar, and geothermal sources.
• The country plans to invest $146 billion in its electricity system by 2029, with $113 billion allocated to generation (including 26 GW of gas and 16 GW of other renewables) and $33 billion to strengthen transmission and distribution networks.
• Mexico's transmission and distribution losses were reduced from 16% to 14% between 2012 and 2014, but remain significantly higher than the 7% average seen in OECD countries; CFE targets a reduction to 10% by 2018.

APA

World Economic Forum (2016). Taking Mexico to full potential. http://www3.weforum.org/docs/WEF_Future_Electricity_Mexico_case_.pdf

Chicago

World Economic Forum. Taking Mexico to full potential. 2016. http://www3.weforum.org/docs/WEF_Future_Electricity_Mexico_case_.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Taking Mexico to full potential |date=February 2016 |url=http://www3.weforum.org/docs/WEF_Future_Electricity_Mexico_case_.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2016taking, author = {{World Economic Forum}}, title = {{Taking Mexico to full potential}}, institution = {World Economic Forum}, year = {2016}, month = feb, url = {http://www3.weforum.org/docs/WEF_Future_Electricity_Mexico_case_.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }