Mexico gas, power and renewables long-term outlook H2 2020: A slow, bumpy road to recovery

This release includes a comprehensive slide pack with our in-depth analysis providing commentary and results of our long-term outlook, complementing the prior data release. It includes a further examination of the evolution of gas and energy market fundamentals under the current Mexican context. After a tumultuous first half of the year, gas and power markets showed signs of a slow recovery in the second half. Gas-base generation reached new highs, accounting for 64.3% of total annual energy generation while gas demand increased by 9% compared to H1 2020, setting the stage for a promising future ahead. However, anti-renewables policies are delaying investments in renewable energy across the country, creating uncertainty around the national energy agenda. Furthermore, the Coronavirus’ second wave remains on the rise, slowing GDP and electricity load recovery rates and adding to the existing pool of risks to overcome in the upcoming years.