Mexico's Energy Transition

Energy attorney Rodolfo Rueda authored a Latinvex article exploring the impact of President Claudia Sheinbaum's sweeping legislative reforms that aim to transform Mexico's electricity sector. The changes aim to balance state oversight with private investment to modernize the country's electric grid, integrate Battery Energy Storage Systems (Sistemas de Almacenamiento de Energía Eléctrica or SAE) and deploy 27 gigawatts (GW) of renewables over the next five years. Mr. Rueda explains that economic drivers, such as capacity market payments, time-of-use arbitrage and tax incentives, are essential for the viability of storage projects. He also argues that by creating a more favorable environment for self-supply frameworks and industrial energy security, Mexico offers attractive opportunities for investment, despite existing financing and regulatory challenges.

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