Mexico’s energy reforms are expected to boost the share of renewables in its power sector, cut carbon emissions and provide a strong platform for economic growth.

That’s the verdict of a new report from the International Energy Agency (IEA).

“This is not a reform – it’s a revolution on an unprecedented scale,” said Dr Fatih Birol, IEA executive director.

“This transformation touches every sector of the Mexican energy industry and goes well beyond. However, let’s not underestimate the task ahead. It is a huge undertaking and there will be challenges, but the reform has made remarkable progress. The government’s path forward is the right one.”

Mexico’s energy reforms – Reforma Energética – began in 2013 with the intention of opening up key parts of the sector to new players, investment and technology.

The IEA’s Mexico Energy Outlook finds that the country’s auction system has provided “a substantial boost to Mexico’s clean energy efforts in the power sector. More than half of the country’s new power generation capacity installed between now and 2040 is renewables-based, tapping Mexico’s large wind and solar resources.”

The report adds that “new investment in electricity is essential to meet rapid growth in electricity demand, and allows Mexico to reach its target of producing 35 per cent of electricity from clean sources by 2024”.