Mexico’s energy mix is heavily dominated by fossil fuels, which account for approximately 75% to 80% of its electricity generation as of 2024-2025. Natural gas is the primary fuel source, while the share of clean energy has recently seen a decline due to reduced hydroelectric output.

The most recent data indicates a high reliance on imported and domestic fossil fuels to meet growing industrial demand.

When considering all energy uses (including transport and heating), the dependence on oil is even more pronounced.

Oil: ~44-45%
Natural Gas: ~39-45%
Coal: ~4-5.5%
Renewables & Others: ~5-10%

President Claudia Sheinbaum has declared a goal of 45% renewable share in electricity generation by 2030. The government plans to install roughly 28 GW of new generation capacity by 2030, with a major focus on state-funded solar and wind projects.

Mexico is accelerating its green hydrogen sector, inaugurated its first production plant in Querétaro in late 2025. Leveraging abundant solar and wind resources, the country has announced roughly $21-$23 billion in investments for projects aimed at reducing reliance on hydrocarbons. The industry is focused on decarbonizing industrial processes, with 28 projects in development. The first green hydrogen plant, a partnership between German and Mexican firms, opened in Querétaro to produce hydrogen for industrial use, with a projected reduction of 100 tons of CO₂ annually. Mexico is considered a major potential player in Latin America due to its high renewable energy capacity (solar and wind) and proximity to industrial hubs, potentially positioning it as a future exporter. As of early 2026, the country is transitioning from feasibility studies to early-stage industrial production, with a focus on integrating clean energy into its national energy mix.