Efforts to reduce Mexico's dependence on fossil fuels.
President Enrique Pena Nieto's energy reforms aim to boost investment in Mexico's hydrocarbons industry. However, they are also intended to reduce the country's reliance on fossil fuels by developing the biofuels sector and renewable energies, such as solar, wind and geothermal power. Among the issues that the new legislature, which starts on September 1, will have to address are three pieces of secondary legislation that are key to achieving the government's goal of increasing the share of renewables in Mexico's energy matrix.
Unless the state improves and expands transmission capacity, development of the sector will be limited.
Renewables will face stiff competition from the hydrocarbons sector, which has received much greater incentives for investment.
Clean energy laws will continue to encounter opposition from businesses if power derived from renewables does not become cheaper.
