A belated boost to Mexico’s electric grid bottleneck

MXPE Weekly Essentials ft. Amazon skirts import crackdowns, a new Trump-friendly financial regulator, and other highlights in Mexican politics, policy, and markets from the past week.

MXPE Weekly Essentials. Only the most important news in Mexican politics, policy, and markets from the past week.

Uncharted Mexico: Mexican grid gets jolt

Mexico has lots of installed power generating capacity, just no way of getting much of it to where it needs to be. In a previous report, The Mexico Political Economist went into why Mexico’s electricity network is the country’s biggest economic brake. Polls show that businesses believe electricity supply is the biggest challenge to growth—on top of red tape, water, or insecurity.

Of the issues in Mexican electricity, the biggest is in transmission—the power lines that get electricity from the plant to where it needs to get. The government is trying to fix this transmission bottleneck by investing about $8.18 billion dollars in expanding the country’s network significantly.