Electricity Sector in Mexico

Electricity Sector In Mexico

The energy sector in Mexico has certain limitations in terms of private participation and foreign companies are allowed to operate in the country only through specific service contracts. As required by the Constitution, the electricity sector is federally owned, with the Federal Electricity Commission (Comisión Federal de Electricidad or CFE) essentially controlling the whole sector. Attempts to reform the sector have traditionally faced strong political and social resistance in Mexico, where subsidies for residential consumers absorb substantial fiscal resources.

The electricity sector in Mexico relies heavily on thermal sources (75% of total installed capacity), followed by hydropower generation (19%). Although exploitation of solar, wind, and biomass resources has a large potential, geothermal energy is the only renewable source (excluding hydropower) with a significant contribution to the energy mix (2% of total generation capacity). Expansion plans for the period 2006-2015 estimate the addition of some 14.8 GW of new generation capacity by the public sector, with a predominance of combined cycles.

Read more about Electricity Sector In Mexico:  Access To Electricity, Renewable Energy Resources, Summary of Private Participation in The Electricity Sector, Sources

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