Fossil fuels currently account for 85% of Mexico’s total energy supply. Oil is the largest source of primary energy at almost 50%, largely because of the high oil consumption in the transport sector. The role of oil in the power sector, however, has decreased over the past two decades due to a major shift to fossil gas.
In 2015, Mexico passed the Energy Transition Law which set targets to achieve 25% “clean” power generation by 2018, 30% by 2021, and 35% by 2024. Additional targets were set under the National Climate Change Strategy: 40% clean power by 2034 and 50% by 2050. However, Mexico’s definition of “clean energy” includes nuclear, CCS, and efficient co-generation., Mexico did not meet its 2018, or 2021 clean energy targets and is not on track to meet its 2024 target either.
In 2020 the government rolled back new renewable energy projects, citing energy security concerns due to the COVID-19 pandemic. The government has also prioritised the modernisation of existing fossil fuel plants and refineries, while recently cancelling the fourth clean energy auction.