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Decarbonization routes in power generation drivers

Introduction

Mexico’s energy sector is at a crossroads, facing both the necessity to reduce greenhouse gas emissions and the challenge of meeting growing energy demand. Currently, Mexico’s energy generation remains heavily reliant on fossil fuels, particularly oil and gas, which make up a significant portion of the electricity mix. Despite recent investments in renewable energy, especially in wind and solar power, the transition to a sustainable energy system has been slow. Renewables have grown but still represent a smaller share compared to fossil fuels, limiting progress toward Mexico’s climate goals.

Transmission efficiency also poses a challenge, with substantial energy losses along transmission lines due to outdated infrastructure. These inefficiencies, combined with high fossil fuel dependency, contribute to significant emissions that hinder Mexico’s ability to meet its international climate commitments.

To achieve a more sustainable energy future, Mexico must overcome these challenges by accelerating renewable energy deployment and improving grid efficiency. Policy interventions, infrastructure upgrades, and adoption of advanced technologies are essential to support this transition. Addressing these issues can not only reduce emissions but also improve energy security and support economic growth. As Mexico navigates this complex energy landscape, a strategic shift towards low-carbon energy sources and optimized grid management will be crucial.

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