Is increased energy demand a threat to nearshoring in Mexico?

The growing global demand for energy: challenges and opportunities for Mexico

A Challenging Energy Future

Global energy demand is likely to increase by 23% between now and 2045, according to the Organization of Petroleum Exporting Countries (OPEC). “We will need innovative solutions such as carbon capture, utilization and storage, and hydrogen projects, in addition to a circular carbon economy, which has received positive support from the G20,” said OPEC Secretary General Haitham Al Ghais, as part of the event Energy Asia, held in Kuala Lumpur, Malaysia.

Factors driving the increase in energy demand

The increase in global energy demand can be attributed to several factors:

• Economic growth: In both developed and developing countries, growth drives a greater need for energy for industrial and commercial activities.
• Population increase: The more people, the greater the energy requirement for daily activities.
• Industrialization and Development: Sectors such as manufacturing, construction, industry and technology continue to demand high levels of energy.
• Energy transition: Although there is a strong trend towards clean energy, many regions still rely on conventional sources due to their location or level of development.

The need for an energy transition

Faced with this scenario, it is urgent to move towards renewable energy sources to face climate change and ensure sustainability.
It will also be key:

• Improve energy efficiency.
• Promote responsible use of resources.
• Implement resilient energy policies.

These actions are essential to ensure a more sustainable and robust energy future.

Nearshoring in Mexico: Opportunity Under Threat

Mexico has become an attractive destination for Nearshoring, thanks to factors such as:

• Its geographical proximity to the United States
• Skilled labor
• Competitive labor costs

However, the lack of energy supply can directly affect the stability and competitiveness of this strategy.

Risks due to energy insufficiency

Interruptions in the power supply or its instability can:

• Stop key industrial operations
• Reduce productivity
• Increase operating costs
• Decrease Mexico's competitiveness
• Dissuade potential investors

Solutions to ensure a reliable energy supply

To mitigate these risks, you need to:

• Strengthen energy infrastructure
• Diversify energy sources
• Promote stable and modern public policies

In addition, companies must:

• Adopt efficient technologies
• Evaluate alternative energy sources
• Prepare for potential electrical interruptions

Conclusion: Energy for the Future

“According to OPEC forecasts, the increase in global demand for primary energy means that we will need all available forms of energy,” says Haitham Al Ghais.

Energy sustainability is not an option, but an urgent need. Only through collaboration between governments, companies and society can an adequate, safe and efficient supply be guaranteed, capable of sustaining economic and social growth in the coming years.