Background on the Situation
The government of President Andrés Manuel López Obrador has committed several strategic errors, one of which was restricting the electricity generation capacity that could support economic expansion. This issue has been exacerbated by the ideological blackout of lopezobradorismo, hindering nearshoring opportunities that were anticipated before Donald Trump’s return to the U.S. presidency.
The Rise and Fall of Manuel Bartlett
Manuel Bartlett, a prominent figure in Mexican politics, transitioned from attempting to sabotage the electoral system via the PRI to targeting the electricity system with misleading rhetoric about energy sovereignty. His carbon-centric vision, which prioritizes burning fuel oil over modernizing and maintaining an efficient energy grid, has led to increased debt for the country and low productivity within the Federal Electricity Commission (CFE).
Bartlett’s Impact on CFE and Energy Transition
Under Bartlett’s direction, the CFE’s debt grew approximately 4.3 times more than during Peña Nieto’s administration. This reliance on fossil fuels for energy generation has stalled the country’s transition to cleaner energy sources, creating an energy bottleneck.
López Obrador’s Corrective Measures
Recognizing the issues, López Obrador took steps to address them. Appointing an expert like Emilia Esther Calleja as the new head of the CFE was a positive change welcomed by the private sector. The Energy Planning Law helped restore the transition to cleaner, private energy sources that were previously obscured by the coal cloud of the previous administration.
Private Investment and Infrastructure Improvement
Although private investment has been encouraged but not as forcefully as needed, it has started to expand electricity generation capacity. More importantly, the focus has shifted towards modernizing and expanding electrical transmission and distribution networks—an implicit acknowledgment that sovereignty without proper infrastructure leads to paralysis.
Sheinbaum’s Pragmatic Approach
Under Claudia Sheinbaum’s leadership, the government has strategically maintained its position within the North American trade block, even with tariffs imposed on China. However, this approach’s success hinged on having the essential element: sufficient energy to power those “Made in Mexico” propaganda signs.
Overcoming Energy Bottlenecks
In practical terms, the previous government’s policies created obstacles for many industrial and service sectors. Now, efforts are underway to rectify these bottlenecks by addressing the energy limitations that hindered growth.
Key Questions and Answers
- What were the strategic errors committed by López Obrador’s government? One significant error was limiting electricity generation capacity, which could have supported economic expansion.
- Who is Manuel Bartlett and why is he relevant? Manuel Bartlett is a prominent Mexican political figure known for his carbon-centric energy vision, which has negatively impacted the country’s debt and CFE productivity.
- How has López Obrador attempted to rectify these issues? He appointed an energy expert, supported private investment in clean energy, and prioritized modernizing electrical infrastructure.
- What are the current energy challenges in Mexico? Despite progress, there are still energy bottlenecks affecting industrial and service sector growth.
