Mexico Launches Major Green Energy Program

Country Overview

The North American country of the United Mexican States (Mexico) is bordered by the Pacific Ocean, United States, Guatemala, Belize, Gulf of Mexico, and Caribbean Sea. The population of Mexico is approximately 128.93 million people.

In 2022, Mexico’s economy was ranked 14th in the world in gross domestic product (GDP). The country’s economy is dependent on the export of cars, motor vehicle parts,  computers, delivery trucks, crude oil, beer, tropical fruits, and vegetables.

Environment Policies

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, 100% of the people in Mexico had access to electricity. In 2022, the state-owned utility CFE used natural gas (53.9 %), renewable energy (22.8%), oil (14.1%), coal (6.2%), and nuclear energy (3.0%) to generate electricity in Mexico. Hydropower, wind, and solar are the dominant types of renewable energy used to generate electricity in Mexico.

Recent renewable energy projects in Mexico include:

  • 300 MW Solar Project – In November 2023, American company Atlas Renewable Energy commissioned the La Pimienta solar project at a site approximately 400 miles east of the nation’s capital, Mexico City.
  • 200 MW Solar Project – Mexico’s state-owned utility CFE has announced plans to build the Cerro Prieto III solar project at a site approximately 100 miles east of the city of Tijuana in northwest Mexico. The project is forecast to be commissioned in 2029.
  • 150 MW Solar Project – In December 2023, CFE commissioned the Cerro Prieto II solar project at a site approximately 100 miles east of the city of Tijuana in northwest Mexico.
  • 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.

Conclusions

Commercial oil first was discovered in the Mexico in 1901, approximately 175 miles northeast of the nation’s capital, Mexico City. In 2022, Mexico was the 15th largest crude oil exporting country in the world.

Crude oil production has steadily fallen in Mexico over the past decade. In 2012, Mexico produced approximately 2.55 million barrels of oil per day. In 2021, Mexico produced approximately 1.66 million barrel oil per day.

The export of crude oil is still important to Mexico’s economy. In 2021, Mexico exported U.S. $20.3 Billion of crude oil.

On 24 February 2022, Russia invaded Ukraine, prompting the European Union, United Kingdom, United States, Canada, Japan, South Korea, Australia, and New Zealand to place economic sanctions on Russian imports and exports. As a result, the crude oil and natural gas prices 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. Volatile oil prices are providing 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 beginning to shift from exporting oil to green energy to countries in North America.

 Jack Kerfoot

Website – “Our Energy Conundrum”

www.jack kerfoot.com

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, podcast, and television stations from New York City to Los Angeles on a diverse range of energy issues.

 

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