Felicity Bradstock
Felicity Bradstock is a freelance writer specialising in Energy and Finance. She has a Master’s in International Development from the University of Birmingham, UK.
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By Felicity Bradstock – Dec 06, 2025, 10:00 AM CST
- Mexico reversed years of nationalisation earlier this year by allowing mixed public-private energy projects while keeping majority state ownership.
- More than 30 solar and wind projects and billions in foreign investment are now advancing under Sheinbaum’s 2030 clean-energy strategy.
- Forecasts suggest Mexico could reach 36 GW of solar and significantly expand battery storage as private participation accelerates.
After several years of stagnation in Mexico’s renewable energy sector, the introduction of more favourable reforms alongside several new solar energy agreements suggests that the Latin American country is pursuing a more diversified energy mix. After several years of energy policy that focused on greater nationalisation, the door is once again open for private participation, which is expected to include the development of several green energy projects and attract investment from various firms worldwide.
Under President Andrés Manuel López Obrador (AMLO), who led the Morena party from 2018 to 2024, Mexico’s energy sector underwent a significant nationalisation, during which time it became harder for private companies to participate in the industry. AMLO decided to nationalise Mexico’s energy sector, citing over-greedy international energy companies, sectoral corruption, and the need for enhanced national energy security.
During his presidency, AMLO supported fossil fuel expansion, bailing out the state-owned oil and gas company PEMEX several times, as well as investing heavily in the construction of major new refineries. Meanwhile, investments in green energy stagnated as AMLO did not prioritise renewable energy development at the national level or allow for investment from private companies.
Since President Claudia Sheinbaum came into office in 2024, Mexico’s energy sector has begun to undergo a transformation, following the introduction of a new energy reform in March 2025. Sheinbaum followed in AMLO’s footsteps by maintaining the national majority ownership of the electricity sector, meaning the Federal Electricity Commission (CFE) must provide at least 54 percent of the country’s electricity. The reform also disbanded the National Hydrocarbons Commission (CNH) and the Energy Regulatory Commission (CRE), replacing them with a centralised National Energy Commission (CNE).
While Mexico’s energy sector will continue to be dominated by state-owned companies, Sheinbaum has reopened opportunities for foreign investment in the sector. In her national economic development strategy, Plan México, Sheinbaum introduced the aim of adding almost 23 GW of new power generation capacity by 2030, as well as establishing 100 transmission and distribution projects.
During her electoral campaign, Sheinbaum stated her commitment to renewable energy, emphasising the potential to develop Mexico’s abundant solar and wind resources. “We are going to propel renewable energy in Mexico,” Sheinbaum said during her inauguration.