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English version from the German-Mexican Energy Partnership

Improving and Refocusing Electricity Subsidies: Options for optimization in Mexico

IISD is proud to partner with CONECC German-Mexican Energy Partnership on this report which identifies and evaluates options for reforming Mexico’s electricity subsidies.

In 2016 electricity subsidies amounted to MXN 130 billion (USD 6.8 billion). Households received 78 per cent of this subsidy, followed by the agricultural sector (11.3 per cent), industry (10 per cent) and services (0.7 per cent). The options are drawn from public reform discussions that have been taking place in Mexico and have been proposed by Mexican experts, focusing on the two most subsidized categories of electricity consumer: residential and agriculture. The evaluation is conducted considering a series of possible socioeconomic impacts on different income groups.

Reposted with the permission of Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).