Sheinbaum to present energy transition plan

Mexico's new president, Claudia Sheinbaum, will present a plan to attract new investments in the electricity sector and an "ambitious" energy transition strategy.

Sheinbaum, Mexico's first female president, ratified the commitment made by former-president Andres Manuel Lopez Obrador of maintaining 54pc of the electricity generation in the hands of state-owned utility CFE and providing "clear rules" for private-sector companies to invest in the remaining 46pc.

In her inauguration speech to congress, Sheinbaum also said it was in the best interest of all Mexicans to have a strong public company in the electricity sector to provide cheap power to households. She also promised that prices for electricity, gasoline and LPG will not rise faster than general inflation.

The Mexican congress approved the process to change the constitution to give more power to CFE in prioritizing electricity dispatch over private-sector companies.

Sheinbaum also said crude production will not go above 1.8mn b/d during her term, as it is "impossible" to reach the 3mn b/d promised under the 2014 energy reform without harming the environment. The increase in energy demand in Mexico will be met by renewable sources, she said.

Among her economic priorities is attracting more international manufacturers to bring their plants to Mexico to take advantage of nearshoring.

Her administration will also continue to implement the controversial bill to overhaul the judicial system passed in the last month.

By Edgar Sigler