A new report from the International Energy Agency (IEA) has highlighted the potential revitalization of the Mexican energy sector thanks to the massive energy reform that was initiated in 2013.
The IEA believes Mexico’s Reforma Energética (Energy Reform) will reverse the country’s declining oil production, increase its share of renewable energy in the power sector, and slow the escalating growth in carbon emissions. The report, Mexico Energy Outlook, states that the country’s “energy sector is in a period of profound change”.
Mexico’s Reforma Energética came into being because the government had recognized its energy sector was heading in the wrong direction. As such, the country’s energy sector is being completely reshaped — Petróleos Mexicanos (PEMEX) will no longer have a virual monopoly over the country’s oil and gas.
What’s more, the Comisión Federal de Electricidad (CFE) will lose its dominance over the electricity sector.
As a result, Mexico’s electricity sector will now be open to new players, new investments, and new technologies.
“This is not a reform, it’s a revolution on an unprecedented scale,” said Dr. Fatih Birol, the executive director of the IEA.
This analysis provides a comprehensive assessment of Mexico’s energy demand and supply outlook to 2040. The report:
- Maps out the implications of the Reforma Energética across the energy economy
- Explores the ambition of a reformed power market to meet rising demand, while tapping Mexico’s abundant renewable resources and reducing the costs of power supply
- Assesses how and when the new upstream bid rounds can turn around today’s declines in oil and gas output
- Identifies the challenges that remain, while also quantifying the value of Mexico’s energy transformation in a “No Reform Case”
Photo of Pemex gas station via Wikipedia.