Mexico’s new president, Claudia Sheinbaum, plans to establish clear guidelines for private investment in the power sector, acknowledging the state’s limited resources to expand renewable energy and address electricity supply and distribution issues, according to a top cabinet official.
Sheinbaum is expected to present a plan detailing the roles of private investors on October 15 at a forum with US and Mexican CEOs, Economy Minister Marcelo Ebrard revealed in an interview. As the country’s leading trade official, Ebrard is tasked with attracting investment to Mexico and will play a crucial role in upcoming negotiations for a review of the free-trade agreement with the US and Canada.
“We need a significant amount of money for distribution to meet the needs we will face in the coming years, especially in the northern part of the country,” Ebrard told Bloomberg’s David Westin at a BloombergNEF forum in Monterrey. “We need to generate clean energy like never before in Mexican history, so private capital is essential.”
Ebrard emphasized that energy will be the most critical issue for the country’s development during Sheinbaum’s six-year term. Sheinbaum announced in October a goal to generate 45% of Mexico’s power from renewables by 2030. Analysts estimate this could cost up to $50 billion and have expressed doubts about the plan’s feasibility.
Following a challenging business environment under Sheinbaum’s predecessor, Andres Manuel Lopez Obrador, investors are keen to see how her administration might differ. The peso has fluctuated against the dollar, falling when Sheinbaum aligns with Lopez Obrador’s views, such as his plan to elect judges by popular vote, and rising when she takes a more pragmatic approach, including her choice of Ebrard, a seasoned politician seen as a moderating influence in the populist Morena party.
In the interview, Ebrard portrayed Mexico as investor-friendly and ready for business, particularly with its northern neighbor.
“We need to be very close to the CEOs of companies. We need to provide the necessary information for their decision-making,” he said. “We need to build trust and a friendly approach. We must work closely with them over the next six years to achieve our main goals.”
Source: Yahoo News
