Mexico’s clean energy production took a step back in the first quarter of 2025, sparking concerns among energy sector authorities. Despite several green energy projects underway, renewable resources are on the decline. The country’s clean energy output dropped to 24% of total electricity generation, down from 26.4% in the same period in 2021.
The Mexican Institute for Competitiveness (IMCO) reported that clean energy production totaled 18,900 gigawatt-hours in the first quarter. Hydroelectric, geothermal, and biomass energy sources saw significant declines – 23.5%, 13.8%, and 2.4%, respectively. In contrast, photovoltaic and nuclear energy rose by 4.6% and 50.2%.
Broken Promises
Mexico’s General Law on Climate Change set a target of generating 35% of its energy from clean sources by 2024. However, the country fell short of this goal. The current National Development Plan 2025-2030 aims to reach just 21.5% by 2030, a significant drop from the original target. This represents a 13.5% decrease from the 2024 goal.
Former presidential candidate Gabriel Quadri pointed out that the previous administration, led by Andrés Manuel López Obrador, prioritized fossil fuels over renewable energy sources. This policy shift affected the country’s clean energy production. Quadri noted that the current administration, headed by President Claudia Sheinbaum, faces an uphill task in reviving Mexico’s renewable energy sector.
The challenge is not just policy-related; it’s also financial. Quadri highlighted that the Federal Electricity Commission (CFE) lacks the financial capacity to operate and expand effectively. Private investment is also restricted, limiting the CFE’s ability to grow. The commission is currently expanding natural gas-powered plants in Tula, Tuxpan, Altamira, Mazatlán, and Salamanca, rather than prioritizing renewable energy sources.
A Tough Road Ahead
To become a global powerhouse, Mexico must catch up in the energy sector. President Sheinbaum needs to drive the country’s renewable energy growth. The CFE’s financial constraints and limited private investment hinder its ability to expand and modernize. Mexico’s energy sector faces significant challenges, but with the right policies and investment, the country can still achieve its clean energy goals.
The country’s energy future is uncertain, with the current administration struggling to balance economic and environmental priorities. As the world shifts towards cleaner energy sources, Mexico must adapt to remain competitive. The next few years will be crucial in determining the country’s energy trajectory.