Sheinbaum’s US$13.5bn generation, transmission plan for Mexico

Mexico’s presidential frontrunner Claudia Sheinbaum has vowed to allocate US$13.5bn in the next six years to finish President Andrés Manuel López Obrador’s energy projects and start her own to strengthen the generation and transmission segments.

The plan she presented to businesspeople this week includes 13.6GW of new generation by modernizing and equipping five hydroelectric plants, two more stages of the 1GW Puerto Peñasco solar plant in Sonora state, two new combined cycle plants and one internal combustion plant, in addition to unspecified wind and other solar projects. 

The plan of ruling party Morena’s candidate, which she showed to more than 500 local and foreign businesspeople, also entails a 55.4bn-peso (US$3.2bn) investment for 44 projects to build nearly 4,000km of transmission lines and 8,548MVA of capacity. The strategy also involves 41 distribution projects with an investment of 5.3bn pesos.

“Although it is progress, it’s clearly insufficient. It’s simply too little. I liked the 3,850km of transmission lines, however, that is urgent,” Gonzalo Monroy of energy consultancy GMEC told BNamericas. 

A major focus of the plan involves finishing López Obrador’s portfolio such as the six combined-cycle plants for which progress has not advanced as envisaged. 

Between 2025 and 2027, the presentation says, 120MW will come online through the modernization of hydro plants Angostura and Malpaso in Chiapas state and Mazatepec in Puebla state, in addition to 15 repowering projects for hydro plants with 92MW capacity.

Monroy added that Sheinbaum’s proposal did not include investments or a strategy for state-owned oil company Pemex. "That's what's difficult," he said.

Overall, the expert labeled Sheinbaum’s proposals as a continuity of López Obrador's energy vision. 

For example, just like the current president, the 61-year-old scientist has vowed to maintain power utility CFE as the country’s main player, with at least 54% of the market. The remaining share will be left for the private sector and “clear rules” will be established, according to the plan. 

During the event, Sheinbaum vowed to accelerate the country’s energy transition and promote the construction of new renewable projects, but projects are not specified in her plan, nor whether the private sector will have a stake in that area. 

"Perhaps, as a corollary, Claudia says nothing about private participation. Puerto Peñasco-type renewables can be made, but that project did not solve any problem," Monroy said. 

Sheinbaum is the favorite to win the June 2 presidential election, with several pollsters putting her up to 20 points ahead of opposition candidate Xóchitl Gálvez.