Mexico | Shortage of FDI in energy with potential impact on nearshoring

Summary

FDI in Energy between 2006 to 2023, presented peak levels between 2013 to 2018, with 55.3% of investment in this period which coincide to regulatory changes that allowed private participation. The same has plummeted between 2019 and 2023, being 50.1% lower if compared against the period from 2013 to 2017.

Key points

• Key points:
• Shortcomings of the National Electric System as the main challenge in attracting nearshoring.
• The 2013 electricity reform changed the industry model by allowing private participation: electricity generation and commercialization.
• The maximum FDI in energy in the last 15 years was in 2017, amounting to US$6,796 million.
• The high levels of FDI in the energy sector observed between 2013 to 2018 coincide with regulatory changes in the electricity industry.
• FDI in Energy has plummeted between 2019 and 2023, being 50.1% lower when compared against the period from 2013 to 2017.

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