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4.54. In 2021, the Law on the Electricity Industry was amended to change the order in which generating companies can dispatch their production on the grid. However, the reform was suspended, as the private sector filed an appeal on grounds of unconstitutionality with the Supreme Court of Justice of the Nation (SCJN). The authorities indicated that, in April 2022, the SCJN had dismissed the appeal. The reform was therefore approved but has yet to be implemented. The reform seeks to adopt a model that ensures the security of the electricity dispatch, as power plants use mainly renewable sources, which may create problems of intermittency in production and, therefore, compromise the dispatch. As a result, priority is given to the dispatch of electricity produced by the CFE's plants, whether they are hydroelectric plants or plants using conventional sources of energy. Although this change seeks to guarantee supply, and strengthen the CFE, it could discourage private investment in renewable energy, by creating greater uncertainty for private operators.

4.55. Mexico promotes the use of clean energy sources through clean energy certificates (CEL), and it set clean energy generation targets of 25% in 2018, 30% in 2021, 35% in 2024, 40% in 2035 and 50% in 2050. However, the changes to the order of the aforementioned electricity dispatch and the new rules for the granting of clean energy certificates (Box 4.2) could discourage private investment in renewable energies, which would make it difficult to meet the targets set. In this regard, it is important to highlight that currently the CFE does not operate any solar or photovoltaic plants, and does not appear to have any plans to invest in this type of project.

Box ‎4.2 Clean energy certificates (CEL), 2017-2022
Clean energy certificates (CEL) are documents issued by the CRE which guarantee that a certain quantity of energy is produced using clean energy sources. These certificates are granted to power generating facilities for each megawatt hour (MWh) produced using clean energy sources. To prove that their energy is clean, companies selling electricity to basic users have to purchase certificates on the wholesale electricity market, for the percentage of clean energy that they are selling.

Box ‎4.2 Clean energy certificates (CEL), 2017-2022
In accordance with the Law on the Electricity Industry, the the Energy Regulatory Commission (CRE) grants clean energy certificates to: (1) plants that began to operate as from 2014 (all private); and (2) CFE plants which were operating in 2014 and which meet the minimum investment requirement to increase their production using clean energy sources. In 2014, none of the plants operated by the CFE met this requirement. However, as from 2019, the CRE began to grant clean energy certificates to all plants producing clean energy, regardless of any requirements, which benefit the CFE plants that did not qualify in 2014.

Box ‎4.2 Clean energy certificates (CEL), 2017-2022
A minimum percentage of electricity sold by companies to basic users must be produced using clean energy sources. In 2022, this requirement is 13.9%. As was the case in 2017, the CFE is the only company that sells electricity to basic users. To prove compliance with this minimum requirement, the CFE must purchase a number of clean energy certificates equivalent to 13.9% of the energy sold. If the CFE does not meet the requirement, the CRE may issue it with a fine.

Box ‎4.2 Clean energy certificates (CEL), 2017-2022
Clean energy certificates were sold on the wholesale electricity market until 2018 through auctions or contracts. The auctions were suspended in 2018, and since then sales have been carried out solely through contracts, at an agreed price. This resulted in a price increase. However, since 2019, as a result of granting clean energy certificates to all plants generating clean energy, the supply of certificates increased and, in principle, the price decreased. While this enables the CFE to purchase clean energy certificates at a lower cost, it could discourage private investment in plants using clean energy.

4.137. Mexico is setting out to create a sustainable, competitive and multimodal transport system with a view to reducing costs and improving and increasing connectivity with production and consumption centres. (...)

4.141. (...) According to the Sectoral Programme for Communications and Transport 2020-24, Mexico wishes to promote the use of trains to reduce economic and environmental costs. (...)

4.170. The Ministry of Tourism (SECTUR) formulates and implements sectoral policy, the aims of which are outlined in the Sectoral Programme for Tourism (PROSECTUR) 2020-24, based on the National Development Plan (PND) 2019-24. Mexico is pursuing an inclusive and sustainable tourism model. One of the objectives being pursued in order to promote sector growth is diversifying tourist destinations and tourism markets. (...)

3.4. There are a number of initiatives which have either been implemented or are set to be undertaken by the Ministry with an aim at either establishing new industries or improving upon existing ones. These are as follows: (...) Restructuring of the Sugar Industry (...) The Barbados Agricultural Management Company (BAMC) is responsible for the processing and sale of sugar through cultivation on crown land and the purchase of sugar cane from private farmers at a fixed price. Decreasing yields and falling prices have however made this an untenable situation. Plans are however underway to privatize the industry with Government retaining only a limited stake in the sector. It is proposed that this will be achieved by transitioning the industry from one simply based on the production of bulk sugar for export into an industry focused on value added production including increased production of direct consumption sugar for both the domestic and export markets, increasing supply of the molasses to the rum industry and the generation of renewable energy from biomass among other plans. (...)