(Bloomberg) -- President-elect Claudia Sheinbaum named an electrical engineer to head Mexico’s power utility and fix the blackouts which are jeopardizing efforts to attract foreign investment.
Emilia Esther Calleja was appointed chief executive of the Comision Federal de Electricidad, known as CFE, where she will be in charge of implementing Sheinbaum’s plans to boost generation and transmission capacity.
Mexico’s power grid has been under strain in recent years amid growing demand and a lack of investment under current President Andres Manuel Lopez Obrador.
Power shortages have jeopardized the nation’s “nearshoring” ambitions, whereby companies open plants in Mexico to be close to the US and its giant consumer market. But some foreign firms have been put off by the difficulties doing businesses in Mexico, including its lack of clean, reliable electricity.
Calleja, the first woman to head the utility, will also oversee Sheinbaum’s plan to accelerate Mexico’s transition to green energy. She is currently general director of CFE’s power generation unit.
“Calleja is well-regarded within CFE and has extensive knowledge of the company’s operations and processes,” and her background includes roles in thermoelectric generation and project management for new power plants, Empra analyst Alejandro Schtulmann wrote in a note.
Sheinbaum, a climate scientist with a PhD in energy engineering, has pledged $13.6 billion in energy investment, and said she sees a role for the private sector as a minority partner in expanding wind and solar power generation and modernizing hydroelectric stations. She has also pledged to add gas-burning power plants and invest in transit and port infrastructure.
Mexico’s demand for electricity is forecast to grow by at least 3% per year through 2029, according to the Energy Ministry.
--With assistance from Alex Vasquez.
(Updates with analyst quote in the sixth paragraph)
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