Global Renewables Bodies Call on Mexico’s Government to Restore the Country’s Transition to Clean Energy

A joint statement was published today in response to the reversals to key parts of the Electricity Act (Ley de la Industria Eléctrica or LIE) approved by the lower parliamentary chamber earlier this week. The statement asks lawmakers to reject the bill to modify the LIE in order to avoid adverse consequences, which will span beyond the power sector to impact local industries, households and the overall investment environment. The joint statement highlights:

• The damage already done to the investment environment for renewable energy over the last two years, where national policy reforms like this bill are posing an unequivocal threat to local and foreign private sector investment into Mexico’s formerly robust renewable energy market and undermining the principle of fair market competition.

• This critical legal change further relegates renewable energy supply to the back of the queue in Mexico, unwinding the progress made in its energy transition over the last decade and reversing the landmark liberalisation of the energy market in 2015.

• Further hurdles for clean energy development and generation will put at least 17,000 jobs at risk in the wind and solar industries, and initiate a harmful ripple effect in the wider value chain of industrial and commercial sectors which are committed to cost-competitive sustainable energy in Mexico.

• The urgent need to restore the country’s status as a global leader of the energy transition and enable Mexico’s climate commitments by re-establishing legal certainty for the renewables sector and capitalising on the significant investment, socioeconomic benefits and energy security brought by the clean energy transition.

The International Renewable Energy Agency (IRENA) Coalition for Action, an international network of 115 leading renewable energy companies, industry associations, civil society, research institutes and intergovernmental organisations, also acted as signatory to this statement.

Ben Backwell, CEO of The Global Wind Energy Council, stated: “The global wind industry encourages the Government of Mexico to reset the course to a transition to a renewables-based economy, which will generate enormous net-positive benefits in GDP growth, job creation and social welfare gains in the near term and long run. This will also serve to reinforce the resilience and independence of Mexico’s electricity system, which has been tested by the recent energy crisis in Texas.”

Gianni Chianetta, CEO of The Global Solar Council, added “Renewables are delivering electricity at a lower cost than traditional generation plants and bring significant benefits to the local environment and global climate commitments. The global solar industry calls on the Government of Mexico to urgently adopt policies that favour the transition to clean energy sources, which would benefit its citizens, its economy, solar businesses operating in the country and the world’s climate.”