Mexico's power sector will offer sizeable investment opportunities over the coming decade,thanks to the country's robust long-term macroeconomic fundamentals and a supportive regulatoryframework; these will attract private investment in the market, with natural gas, renewables andtransmission and distribution set to be the outperforming sectors. The economy could face risks over thenext several quarters due to the renegotiation of NAFTA and political uncertainty in the run-up of thegeneral election in July 2018, but we believe that in the power sector opportunities will far outweighthreats.
Latest Updates And Structural Trends
In June 2017 the Mexican Ministry of Energy (SENER) published the Plan for the development of thenational power system (PRODESEN) for the 2017-2031 period. The document includes thegovernment's projections for growth in power consumption, generation and installed capacity in Mexicoover the next 15 years, stating that the country will register around USD110bn of investment ininfrastructure projects across the generation, transmission and distribution segments. After reviewing theplan, and taking into account BMI's industry and economic views and data for the market, we haveupdated our forecasts for the Mexican power sector through 2026.