In 2021, Mexico’s economy was ranked 15th in the world in gross domestic product (GDP). The country’s economy is dependent on the export of cars, computers, vehicle parts, delivery trucks, crude oil, beer, tropical fruits. and tomatoes.
In 2016, Mexico signed the Paris Climate Agreement, committing to a 25% reduction in greenhouse gases from a business-as-usual scenario by 2030.
In 2018, Andrés Manuel López Obrador was elected the President and instituted policies to reinvigorate the state-owned national oil company, Petróleos Mexicanos (PEMEX).
In 2019, Mexico’s state-owned electricity utility, Comisión Federal de Electricidad (CFE) announced it wouldn’t initiate any further tenders for renewable energy.
In 2022, Mexico’s Foreign Minister Marcelo Ebrard announced his nation intends to deploy over 30,000 MW capacity of renewable energy by 2030.
Power Generation Capabilities
In 2021, the state-owned utility CFE used natural gas (60.5 %), renewable energy (22.2 %), oil (9.8 %), coal (4.0 %), and nuclear energy (3.5 %) to generate electricity in Mexico. Hydropower, wind, solar, and geothermal are the primary types of renewable energy used to generate electricity in Mexico.
Recent renewable energy projects in Mexico include:
- 350 MW Solar Project – CFE is continuing work on a 350 MW Cerro Prieto solar project at a site approximately 100 miles east of the city of Tijuana in northwest Mexico. The first stage of the project is scheduled to be commissioned in 2023 and the second stage is scheduled to be commissioned in 2029.
- 50 MW Wind Project – In September 2022, Spanish renewable energy company, Elecnor commissioned the Eólica Coromuel wind project at a site approximately 800 miles southeast of Tijuana.
Commercial oil first was discovered in the Mexico in 1901, approximately 175 miles northeast of the nation’s capital, Mexico City. In 2021, Mexico was the 14th largest crude oil and exporting country in the world.
Crude oil production has steadily fallen in Mexico over the past decade. In 2012, Mexico produced over 2.6 million barrels of oil per day. In 2020, Mexico produced less than 1.7 million barrel oil per day.
The export of crude oil is still important to Mexico’s economy. In 2020, Mexico exported U.S. $17.8 Billion in crude oil.
On 24 February 2022, Russia invaded Ukraine, prompting in the United States, Canada, and the European Union to place embargos on Russian exports, including fossil fuels. As a result, the price for crude oil increased by over 50% from May 2021 to May 2022.
Mexico has significant renewable energy resource potential, including solar, onshore wind, offshore wind, geothermal, and biomass. Soaring oil prices have provided Mexico the financial capital to develop the nation’s vast renewable energy resources.
On November 14, 2022. Mexico’s Foreign Minister Marcelo Ebrard announced that Mexico plans to commission over 30,000 MW capacity of renewable energy projects, including wind, solar, geothermal and hydropower by 2030.Mexico is preparing to shift from exporting oil to exporting green energy to the United States.
Mexico is launching a major green energy program, which will benefit many nations in North America.
Website – “Our Energy Conundrum”
Jack Kerfoot is a scientist, energy expert, and author of the book FUELING AMERICA, An Insider’s Journey and articles for The Hill, one of the largest independent political news sites in the United States. He has been interviewed on over 100 radio and television stations from New York City to Los Angeles on a wide range of energy topics.
 The World Bank Group, Access to Electricity (% of Population – Mexico)
 Gross Domestic Product By Country 2021 – Worldometer
 The Observatory of Economic Complexity – Mexico
 Carbon Brief – “2015: Tracking Country Climate Pledges”
 Our World In Data, Mexico: Energy Country Profile by Hanna Ritchie and Max Roser
 “Petroleum: Pre-1938” in Encyclopedia of Mexico by Jonathan C. Brown, 1997
 Crude Oil Exports By Country 2021 by Daniel Workman
 The Observatory of Economic Complexity (OEC) – Mexico Exports