• Energy efficiency is one of the most cost-effective ways to improve public services, reduce operating costs, and advance climate goals by making better use of existing energy resources.
• Technical assistance for energy efficiency projects is most effective when it aligns with government priorities, incorporates local knowledge, and links diagnostics to implementation, financing, and execution.
• These lessons emerge from Mexico’s partnership with the United Kingdom and the IDB Group through the United Kingdom Sustainable Infrastructure Program, which has helped translate technical analysis into practical energy-efficiency solutions for schools, water utilities, and island communities.
Every Mexican peso that a school spends on avoidable electricity costs is a peso that cannot be invested in students. Every dollar wasted through inefficient energy use in water and sanitation systems is a dollar unavailable to improve service quality, and every liter of diesel that an island system can avoid using helps reduce costs and dependence on imported fuels. Across Latin America and the Caribbean, public institutions face growing pressure to deliver better services, manage limited budgets, and advance climate goals.
This is why energy efficiency matters. Reducing energy waste can help governments lower operating costs, improve public services, and cut emissions, often by making better use of existing infrastructure and resources. But identifying opportunities to use energy more efficiently is only part of the challenge. Turning them into action requires technical expertise, sustained engagement with public institutions, and a clear understanding of government priorities and implementation constraints.
This is at the heart of the partnership between the United Kingdom and the Inter-American Development Bank Group (IDB Group) through the United Kingdom Sustainable Infrastructure Program (UKSIP). The program combines UK support, the IDBG's sector expertise and long-standing relationships with governments, and the leadership of national and local institutions to help turn technical analysis into implementable solutions.
Mexico offers a tangible example of how this partnership is translating technical assistance into results across schools, water utilities, and island communities. At its core, the work is guided by a simple idea: addressing energy challenges is not only about producing more energy. It is also about using energy better.
Energy Efficiency Measures Transform Schools
Public schools illustrate this well. They are essential public infrastructure, but they also consume significant amounts of energy for lighting, air conditioning, ventilation, equipment and, increasingly, digital learning. When energy use is inefficient, public budgets absorb costs that could otherwise support education.
Identifying concrete opportunities for improvement begins with understanding how energy is consumed, where efficiencies can be achieved, and what investments are required. With UKSIP support, technical assessments evaluated measures such as energy-efficient lighting, air-conditioning upgrades, thermal insulation, and distributed solar generation. The studies also estimated financing needs and explored potential delivery models.
The findings are already being put into practice. With support from Mexico's Ministry of Energy, energy-efficiency measures are being deployed in schools across Chiapas through the Energy Transition and Sustainable Energy Use Fund, while additional initiatives are being expanded to Oaxaca, Chiapas, and Guerrero in coordination with the Ministry of Public Education.
The Ministry of Energy has also supported the "Sun Goes to School pilot program" in 45 schools in Campeche. The initiative shows how energy-efficiency and distributed solar generation measures can help reduce operating costs, improve learning conditions, and turn schools into real-world demonstrations of efficient and responsible energy use for students, teachers, and local communities.
For Water Utilities, Better Data Leads to Better Investment Decisions
Energy efficiency is often described as the "first fuel" because the cheapest energy is the energy we do not need to consume. This is particularly relevant for water and sanitation utilities, where electricity represents one of the largest operating expenses.
Energy is essential throughout the urban water cycle, from water extraction, treatment, and distribution to wastewater collection and treatment. Reducing these costs begins with understanding where energy is used inefficiently and which improvements offer the greatest potential.
Energy audits and technical assessments supported by the UKSIP-IDB partnership identified opportunities to reduce electricity costs and improve operational performance through measures such as power factor correction, optimization of pumping systems, use of biogas generated in wastewater treatment plants, and installation of photovoltaic panels.
Beyond identifying potential improvements, the studies included technical and financial evaluations of proposed measures, as well as the development of tools to monitor and analyze electricity consumption and billing, helping utilities make informed investment decisions.
Seventeen energy audits were completed across Mexico, including 15 water utilities, the Uxpanapa–La Cangrejera, and aqueduct operators, one of the country's major water conveyance systems, and a strategic water distribution system managed by the State of Mexico Water Commission.
The studies spanned different regions of the country, involving utilities of varying sizes and strategic water infrastructure. This work laid the groundwork for developing economic and financial models, preparing pilot cases, and delivering training activities in collaboration with the National Association of Water and Sanitation Entities.
The results are already becoming visible. The studies identified 1,323 potential energy-efficiency projects, with estimated annual savings of approximately US$ 10.6 million.
Several operators have begun financing lower-cost, high-impact measures with their own resources, while other recommendations are being considered for future investment programs.
This illustrates an important role for technical assistance: helping institutions move beyond identifying opportunities toward preparing viable pathways for investment and execution.
During a recent UKSIP visit to Mexico, representatives from the United Kingdom and the IDB met with government counterparts, including the Ministry of Energy, to review progress and lessons from the portfolio. Discussions highlighted the value of UKSIP-supported technical assistance and continued collaboration around Mexico’s priorities.
Local Solutions Matter for Energy Efficiency
Energy efficiency also looks different depending on local conditions. Island systems, for example, face unique challenges related to generation costs, logistics, reliability, and environmental impacts, particularly where electricity continues to rely on diesel-based generation.
With the support from UKSIP, the IDB conducted technical studies in Cozumel, Isla Mujeres, Holbox, and Isla Natividad that assessed opportunities for energy efficiency and distributed generation.
The analysis evaluated priority measures, resource requirements, and potential financing mechanisms while engaging local stakeholders through consultations conducted directly on the islands. This helped ensure that proposed measures reflected local priorities, responded to implementation realities, and avoided one-size-fits-all approaches.
The work also produced deployment plans that are now helping authorities explore financing and phased deployment of the proposed measures. The result offers a clear roadmap that governments can use to prioritize interventions and advance more sustainable island energy systems.
What Makes Technical Assistance Work: Linking Priorities, Planning and Financing
These examples point to a broader lesson. Energy efficiency may begin with technical analysis, but its value ultimately depends on whether institutions can use that evidence to make decisions, mobilize resources, and implement solutions.
Mexico's experience shows that opportunities to improve energy performance exist across very different public services and territories, from schools and water utilities to island systems. It also shows why the way technical assistance is delivered matters.
Technical assessments create greater value when they respond to government priorities, draw on local knowledge, and connect analysis with implementation and financing. Solutions are also more likely to be useful when they reflect the realities of the institutions and communities expected to put them into practice.
As countries across Latin America and the Caribbean seek to improve infrastructure services while managing fiscal and environmental pressures, energy efficiency remains an important part of the solution. It is often less visible than large infrastructure projects, but it can deliver tangible benefits for public budgets, service quality, emissions reduction, and institutional capacity.
The challenge, ultimately, is not only to meet growing energy needs, but to make better use of the energy already available. Identifying opportunities, strengthening planning processes, and preparing feasible financing pathways require sustained technical support long before infrastructure investments are made.
The UKSIP partnership between the United Kingdom and the IDB Group helps build those foundations by working alongside governments to turn evidence into decisions and technical analysis into practical action that can deliver lasting improvements in public services.