News, Insights and Best Practices for Manufacturing in Mexico

Mexico to open power generation to private companies

02 Sep 2013

Category: Politics & Regulations

President Enrique Peña Nieto's recent decision to open the Mexican oil industry to private investors received significant news coverage. Another facet of his energy plan is equally important. Nieto announced power generation will also be open to private companies, though transmission and distribution will still be state functions, according to Business News Americas.

This decision will create plentiful opportunities for private organizations to enter the electricity generation market in Mexico. Its effects will reach everyone who lives and does business in Mexico. Energy generation by private companies will lead to an adequate and constant supply of electricity, improving the general infrastructure of the country. Power bills will also be cheaper.

Mexico's infrastructure has been on a path of improvement for quite some time. Roads, too, are being modernized and bettered. Companies that choose to manufacture in Mexico through an outsourcing alternative like offshoring can expect convenient and useful amenities they are accustomed to using in their own countries. The risk power outages or damaged roads may present to manufacturing and the supply chain are low, and lessening as time goes on. Nieto's decision is a step toward a Mexican economy that thrives on private investments in important areas of infrastructure.

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