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As of 2021, Mexico’s electricity sector remains heavily reliant on fossil fuels, which accounts for approximately 74% of the country’s electricity production. The largest share of this is attributed to the natural gas. In contrast, RE sources only generated 23% of the country’s electricity, with wind and solar energy accounting for 6.4% and 3.8%, respectively. At the end of 2021, Mexico’s installed capacity reached approximately 88 GW, with 63% of the capacity coming from fossil fuel sources. Mexico’s target is to generate 35% of its electricity from clean energy sources by 2024, and 50% by 2050. To achieve these targets, the country expects to add around 35 GW of RE capacity during, as mentioned in the Program for the Development of the National Electric System (PRODESEN).
Solar PV Sector
Mexico has made significant progress in developing its solar PV sector, with a cumulative installed base of 2.6 GW in 2018 rising to 8.9 GW in 2022, according to EUPD Research estimates. Of this, 6.6 GW was installed in the utility-scale PV segment, while 2.3 GW was installed in the distributed generation PV segment. Solar PV is going to play a crucial role in achieving the country’s RE targets.
Energy Storage
Energy storage is becoming increasingly important in Mexico as the country seeks to integrate more RE into its electricity grid. With the growth of solar and wind power generation in Mexico, there is a need for energy storage solutions that can help to manage the variability of these intermittent sources of electricity. The government plans to add around 4.5 GW of utility-scale energy battery storage capacity during 2022-36, as mentioned in PRODESEN.
Impediments in RE sector
While the country has made significant progress in developing its RE sector, there are still some barriers that are hindering its growth. Regulatory uncertainty is one of the main impediments in the development of RE sector in Mexico.
Conclusion
Despite the current administration’s challenges to RE sources, Mexico’s energy sector has made noteworthy progress in transitioning to renewable energy sources. As a result, the Mexican market remains competitive for RE investors and infrastructure developers.
Stream JA Solar’s Booth-Tour during Solar + Storage Mexico 2023.
