Mexico Seeks Development of Renewable Power to Meet Energy Goals

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Researched by Industrial Info Resources (Sugar Land, Texas)--Mexico had about 16,295 megawatts (MW) of installed renewable-energy capacity as of 2014, which mostly consisted of hydroelectric, wind, solar and geothermal sources. In order to fulfill its international greenhouse gas reduction pledges, Mexico has set a clean energy generation target of 35% by 2024; 40% by 2035; and 50% by 2050. These targets do not include nuclear power, nor fossil fuel facilities with carbon capture and storage.

Several wind projects under development in the country would boost wind generating capacity from 2 gigawatts (GW) to 12 GW by 2020. Wind is the dominant renewable energy technology for power generation in Mexico, due to high wind resources near the Baja Peninsula in the west, and the state of Oaxaca in the south near Guatemala.

Currently, Industrial Info is tracking 241 capital power projects in Mexico valued at more than $52 billion, with 62 wind projects worth more than $14 billion, 33 hydroelectric projects valued at $6.2 billion, and 45 solar projects valued at $3.7 billion. States in Mexico with the most renewable projects are Baja Del Norte with 23 projects valued at $6.2 billion; Chihuahua with 16 projects valued at $5.8 billion; and Nuevo Leon with 16 projects valued at $5.4 billion.

The country also wants to encourage developers to meet the renewable energy goals, with $14 billion worth of investment between 2015 and 2018. The Clean Energy Certificate (CEC) scheme aims to support the achievement of the national clean energy generation goal of 35% by 2024.

The Law for the Use of Renewable Energies and Financing the Energy Transition was meant to define and regulate the use of renewable energy for generation, as well as encourage the use of renewable energy and clean technologies, for electric generation.

One of the major obstacles to renewable energy in the country is the lack of transmission capacity in areas with high renewable energy resource potential. However, a new open-season mechanism has allowed clearer rules regarding grid connection and cost sharing, which would allow the Ministry of Energy to develop transmission expansion plans in cooperation with the Regulatory Energy Commission (CRE) and the National Center for Energy Control (CENACE). The rules would allow the government to contract with private firms to extend, modernize, finance and operate its transmission projects and distribution networks.

Currently, Industrial info is tracking 27 transmission projects in Mexico worth $1.62 billion.

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