Sheinbaum delays publication of Mexico's national energy plan until year-end

Mexican President Claudia Sheinbaum has pushed back publication of the country's long-awaited energy plan until the end of the year.

The delay comes as Mexico's parliament debates controversial energy reforms designed to strengthen state-owned energy companies and limit the role of private capital in the sector.

In her inauguration speech on October 1, Sheinbaum had said she would present the plan "in a few days."

The plan is expected to outline how private companies can invest in the Mexican energy industry.

Sheinbaum has pledged to raise the share of renewable energy in total electricity generation to 45% by 2030, up from around 13% currently.

To achieve that goal, she will need the support of the private sector, analysts have said. 

Ongoing reforms to the energy sector, which will strengthen state-owned companies and end the independence of regulators, will make it harder for Mexico to attract the private capital it needs.

On Tuesday, Sheinbaum reiterated her pledge to reserving 54% of power generation for state-owned utility CFE, with the remaining 46% available to private companies.

The models under which private companies can invest in the energy sector will be defined in secondary legislation, Sheinbaum said.

"We want strong public companies... at the same time as space for private investment in certain areas," she said.

Energy investment stalls

Sheinbaum was speaking at the conclusion of a conference with business leaders from Mexico and the US.

The conference was designed to reassure investors about the impact of a series of far-reaching constitutional reforms, including introducing elections for judges.

Foreign energy companies have been reluctant to invest in Mexico in recent years because of high levels of legal uncertainty. 

Sheinbaum said Tuesday foreign companies had announced around US$20bn of investment in Mexico in 2025. 

That total includes previously announced energy projects, such as the Saguaro Energía liquefied natural gas (LNG) plant, for which developer Mexico Pacific has not yet made a final investment decision.

It also includes the development of the Trion deepwater oil field, which received the green light from Australian oil and gas company Woodside in June 2023. Woodside is partnering with Mexico's national oil company Pemex in the project.

Working group

The economy ministry will set up working groups to explain recent constitutional reforms to investors. One of those working groups will address the reforms to the electricity market, Sheinbaum said.

“None of these reforms represent a problem for investment in Mexico," she said. 

Sheinbaum's government will also create a digital transformation agency to speed up permitting for investments in Mexico. Renewable energy companies in the country have long complained about the time needed to obtain the permits they need.