Fitch Ratings highlights the fact that the energy sector in the country faces the need to improve energy capacity and reliability. Among the challenges is fostering a regulatory environment that encourages private investment in the electricity industry, particularly in the context of preliminary election results.
“A significant investment is required, with the participation of the private sector being crucial for the development of new power plants, ensuring that the financial structure of the Federal Electricity Commission (CFE), rated BBB-/Stable, is not compromised,” he points out. .
The rating agency projects that energy demand will continue to grow due to the economic acceleration in Mexico, mainly due to nearshoring, as well as higher temperatures during the summer.
“Fitch believes that the trend of increasing energy demand and insufficient investment puts pressure on the system’s reserve margin and exposes it to vulnerabilities,” he explains.
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