Mexico’s energy transition plan for 2024-2030 aims to drastically shift from fossil fuels, focusing on clean energy sources like solar, wind, and hydroelectric power. The plan prioritizes combined-cycle gas plants, which will make up 58.9% of electricity generation by 2030. Meanwhile, clean energy production is set to rise from 22.5% of total generation in 2024 to 37.8% by 2030. Coal power will be eliminated completely by the end of the decade.
Under the leadership of President Claudia Sheinbaum, the plan was unveiled with clear goals for Mexico’s energy future. It focuses on significantly increasing the use of renewable energy, while phasing out coal, a major source of pollution and a contributor to environmental and labor rights violations.
“The reduction of coal in energy generation is a clear signal of this administration’s commitment to fighting climate change,” said energy analyst Arturo Carranza.
In the plan, the Federal Electricity Commission (CFE) outlines how it will boost its power generation capacity from 356 terawatt hours (TWh) to 413 TWh over the next six years. This increase will come from a combination of gas and renewable energy, with significant expansions in solar and wind power.
The overall energy policy aims for a balance, with 54% of energy generated by the state-run CFE and 46% by private entities. The head of CFE, Emilia Calleja Alor, is leading these efforts, bringing more than 20 years of experience in the company.
The energy mix for 2030 will include the following breakdown of clean energy:
Solar photovoltaic (PV) energy: Increasing from 5.2% in 2024 to 8.3%.
Wind energy: Growing from 5.8% to 12.9%.
Hydroelectric energy: Rising from 5.9% to 7.5%.
Geothermal energy: Slightly increasing from 1% to 1.1%.
The plan also involves careful site selection for power plants and improving electricity transmission systems to ensure that clean energy is efficiently delivered. “Effective planning is key to expanding renewable energy in the grid and alleviating transmission congestion,” Carranza added.
Coal-fired power generation is expected to drop from 3.6% in 2024 to zero by 2030. This marks the end of coal use, which has been linked to severe environmental and human rights issues, particularly in Coahuila, a major coal-producing region. Past mining activities in the area have been criticized for poor working conditions and environmental damage.
President Sheinbaum’s plan also outlines the development of 100 new industrial parks, including 12 dedicated to critical sectors such as semiconductors and electromobility. The government plans to reduce dependence on imported semiconductors by 10% and foster the local production of components for electric vehicles, including batteries.
Additionally, Mexico’s push for electromobility includes the creation of several industrial zones focused on electric car manufacturing. The country recently unveiled Olinia, the first fully Mexican-made electric car, as part of its efforts to increase national production of electric vehicle components.
These industrial developments, particularly in the areas of semiconductors and electric vehicles, aim to boost Mexico’s manufacturing capabilities, reduce imports, and increase local production, thereby strengthening the national economy.
Through these sweeping energy and industrial reforms, Mexico is positioning itself for a cleaner, more sustainable future, while addressing climate change and energy security.
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