Renewable energy is driving electrification of economies across the globe and supporting the creation of a cleaner, more sustainable and inclusive energy system. Mexico has set a target to have 35% of its electricity consumption supplied by clean energy by 2024, but currently wind power only makes up 8% of the country’s electricity demand.

The majority of renewable energy investments in the country have been driven through public tenders, securing long-term electricity supply. Mexico has embraced renewable energy over the past decade, and the country has been internationally recognized for its regulatory best practices and for its transparent management.

However, the recent measures undertaken by the Mexican government have severely deteriorated the investment environment in the sector, exacerbating the challenging situation caused by the COVID-19 crisis. The scene is set for an unprecedented economic and social challenge, where a number of governments and financial institutions across the globe are beginning to plan economic recovery around the decarbonization of their economies.

Renewable energy has the potential to be a key building block in Mexico’s economic recovery by enabling governments to renew essential infrastructure for a sustainable future, contribute to job creation, provide clean and affordable energy, and strengthen energy security. For all these reasons, it is necessary to restore investor confidence and rely on renewable energy as a driver of economic recovery and as a guarantee in the reduction of polluting emissions from the electricity sector.