© BMWi/Andreas Mertens

The concept of the energy transition is now being taken up on the other side of the Atlantic. Mexico is in the process of overhauling its energy system. Similar to what Germany is doing, it wants to boost its energy performance, cut its overall energy use, and rely on renewables for most of its electricity supply. This makes Germany and Mexico an ideal match when it comes to energy policy. On 12 April, Federal Minister Sigmar Gabriel and Mexican Minister of Energy Pedro Joaquín Coldwell launched the German-Mexican Energy Partnership in the presence of Mexico’s President Enrique Peña Nieto.

Minister Gabriel said at the event: "Mexico is a key economic partner for Germany in Spanish-speaking Latin America. In the last few years, German companies have continuously expanded their activities in Mexico. To ensure that this positive trend continues, we must deepen our cooperation especially in those fields that are key for our future. Therefore I am very pleased that today we were able to agree on an Energy Partnership between our two countries, which will allow us to intensify our exchange of information especially on renewables, energy efficiency, and the electricity and gas markets."

Energiewende and Transición Energética in practice

Last December, Mexico approved its Act on the Energy Transition, whose Spanish name sounds just as energetic as the law itself is meant to be: "Ley de la Transición Energética“. This piece of legislation marks an important step in the process of deregulating the Mexican energy system, which began in 2013, when the oil and gas markets were deregulated. The Act on the Energy Transition sets out specific renewables targets and provides for progress towards deregulation of the electricity market.

Dialogue on how to expand the use of renewables

So what has been agreed within the German-Mexican Energy Partnership? Among other points, the two countries have agreed to enter into a dialogue on funding mechanisms for the expansion of renewables, on how to reform the electricity and gas markets, on regulatory issues, and on forward-looking business models. Also on the work programme are key issues like energy efficiency and energy-management systems, sector coupling, and cooperation on eliminating inefficient subsidies for fossil fuels. The first working session within the Energy Partnership is likely to be held in Mexico in June 2016.

Energy Conference during the Germany Year

The beginning of the Energy Partnership comes at exactly the right time. Last year, Germany was Mexico's most important trading partner within the European Union. What is more, Mexico is about to launch its Germany Year in just a few weeks. From June 2016 to May 2017, Germany and Mexico will be hosting events and launching projects that are all designed to foster German-Mexican cooperation at political level, in culture, science, and within the business community. During his state visit to Germany, the Mexican State President officially launched Germany's Mexico Year.