Mexico Fast-Tracks Approvals of 20 Renewables Projects with Energy Storage

Written by Eric Funderburk for IIR News (Sugar Land Texas)

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Summary

Last week, Mexico gave the go-ahead for 15 solar projects and five wind projects that will come online between 2027 and 2029. The announcement presents a quick turnaround on the projects as the government only opened the process for submissions in mid-October.

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Renewables Approvals

Last week, Mexico announced that it had fast-tracked approvals for 20 renewable energy projects throughout the country, representing more than 3.3 gigawatts of generating capacity. The projects include 15 solar power projects accounting for 2,471 megawatts (MW) and five wind projects that will bring more than 800 additional megawatts. All of the projects will be accompanied by battery energy storage systems, accounting for slightly less than 1,500 MW of readily dispatched power.

The projects will be built across 11 states, with construction expected to start as soon as possible. The government says that approximately 19% of the new generation will be completed next year, followed by 78% in 2028 and the remaining 3% in 2029.

In making the announcement, Mexico Energy Minister Luz Elena Gonzalez said that the fast-track process had cut the projects' permitting times to an average of two months, compared to a typical eight to 18 months.

The Big Winners

By state, Hidalgo emerges as one of the largest winners, obtaining the go-ahead for multiple solar projects. Dhamma Energy Mexico (Mexico City) received awards for three Hidalgo solar plants, with the 163-MW Saturno plant being one of the more prominent. Among other Hidalgo solar winners was Alten Energias (Amsterdam, Netherlands) for its 100-MW Alten Hidalgo plant, which also will feature a 31.3-MW BESS unit. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the related project reports.

While the recent wind approvals only account for a little more than a quarter of the recently approved capacity, their permitting represents a shift in Mexico's movement in its wind sector, which had seen stagnation under former President Andrés Manuel López Obrador. Current President Claudia Sheinbaum began serving on October 1, 2024, and while advocating for the advancement of renewables, her administration's initial energy policy, announced in November of that year, set a limit of 9,550 MW on renewables' overall generation share.

Among the approved wind projects are:

• ReVolve Renewable Power's (Vancouver, British Columbia) El 24 windfarm in Tamaulipas, which will generate more than 100 MW alongside 54 MW of available energy storage.
• The 109-MW Dzilam project in Yucatan, which will include 48.6 MW of storage.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the related project reports.

More to Come

In announcing the winners, Energy Minister Gonzalez provided some interesting context for the process and indicated more approvals in store. The October call was issued strictly to the private sector, which Mexico is hoping to encourage after decades of dominance by state utility Comision Federal de Electricidad (CFE) (Mexico City). The Mexican government has established goals to have 45% of the country's power coming from clean energy sources by 2030 (compared with 22-23% last year) and having 46% of its generation come from the private sector by that time, alongside CFE's 54% share--a share enshrined in law.

Gonzalez stated that the government's fast-track call had generated initial proposals for 98 projects accounting for nearly 6,000 MW of capacity, so plenty of room remains for further renewable additions. The final 20 projects accounted for about 56% of this. While the projects were selected for their relatively advanced position in the development timeline, early reports indicate that two of the developers may have withdrawn their projects from the pool, although which companies and which projects remains unreported.

Gonzalez said Mexico will issue another call for renewable projects in January. She estimated the recently approved projects would require approximately US$4.75 billion in investment.

CFE's Gas-Fired Announcements

While the renewable project approvals are big news, they don't represent the only significant advances seen in Mexico's power sector this month. In a December 17 press conference, CFE General Director Emilia Calleja Alor said the utility would invest US$4.32 billion in natural gas-fired projects. Four of these projects are:

• A 932-MW combined-cycle block in Hidalgo
• A 450-MW combined-cycle block in Salamanca, Guanajuato
• A 554-MW unit in Altamira, Tamaulipas, that also we be able to use diesel as a fuel
• A 240-MW plant in Cabo San Lucas, Baja California Sur, which initial reports indicate will use internal combustion engines to provide power

Subscribers to Industrial Info's GMI Project Database can learn more by viewing the available related project reports.

With the recent renewable project approvals and CFE's gas-fired plans, Mexico is gearing up, like other countries, to meet substantial growth in power demand in the coming years.

Key Takeaways

• Mexico recently announced fast-tracked approvals for 15 solar projects and five wind projects.
• The combined projects represent more than 3.3 gigawatts of capacity additions and will lead to an estimated US$4.75 in investment, according to government.
• Mexico's state-owned utility CFE announced plans to move forward with five natural gas-fired power plants earlier in December.

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