The rating agency found it necessary to expand investments in capacity and electrical transmission, after the blackouts that have been registered recently nationwide.
Given the sudden increases of almost 4 percent annually in electricity consumption in Mexico, Moody’s Ratings raises the need for greater and urgent investment in the energy sector.
“Electricity consumption in Mexico is expanding faster than the Government expected, which raises the need for greater investment in the sector,” highlighted Moody’s Ratings.
The agency assures that the annual demand for electricity in the country rose 3.9 percent in 2022, and 3.8 percent in 2023, figures that exceeded the Ministry of Energy’s projections of 2.5 percent annually.
The document mentions that the high electricity demand boosted the sales of the state Federal Electricity Commission (CFE) by 4 percent in 2023 alone.
In this sense, he also estimated that the existing energy projects in the country “are well positioned to be more strategic in their respective points of operation, especially those that supply industrial centers with high electricity demand.”
Moody’s Ratings considers it necessary to invest in the energy sector to expand investments in capacity and transmission, this “will be crucial” to keep the electrical system stable and guarantee availability for industrial and residential customers.
The series of blackouts in May showed the few energy reserves in Mexico, as well as the challenge that the relocation of companies to the country or nearshoring could pose, which would boost industrial electricity consumption.
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