Mexico Plans to Increase its Wind Generation Capacity

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Researched by Industrial Info Resources (Sugar Land, Texas)--Mexico has plans to increase its wind power generation capacity by 20 gigawatts (GW) by 2030, according to the Mexico Wind Energy Association.

In 2014, Mexico enacted a series of reforms for its energy sector aimed at increasing private investment as well as streamlining and simplifying the permitting process for new generation projects and the creation of a wholesale electricity market. The country also created a new system of tradeable clean energy certificates for developers to construct renewable generation throughout the country.

At the end of 2014, Mexico had more than 2.5 GW of installed wind capacity, with most of its projects constructed in the states of Oaxaca, Baja North, Chiapas, Jalisco, Tamaulipas, San Luis Potosi and Nuevo Leon. The largest wind energy resource in the country is found in the region around Tehuantepec in Oaxaca, with average wind speeds of 7 to 10 meters per second (m/s) with projected capacity factors of 40%.

The country expects investment of $14 billion in wind projects between 2015 and 2018, according to the Ministry of Energy. For related information, see October 9, 2015, article - Mexico Seeks Development of Renewable Power to Meet Energy Goals.

The wind and solar sectors have experienced triple digit growth rates during the last ten years, and the government is set on transforming the country's generation mix, which is now primarily dependent upon oil- and gas-fired generation.

Chinese company Envision Energy (Shanghai, China), a wind turbine manufacturer, and its development company Vive Energia (Mexico City) have recently acquired a majority interest in a large scale wind energy portfolio in Mexico. The companies have announced a strategic partnership to develop 1.5 GW of wind energy capacity by 2020.

Mexico also has had a significant reduction in oil production, driving up the costs of electricity for residential and commercial customers. Oil production in the country peaked in 2004 at about 3.4 million barrels and has fallen to 2.3 million barrels in 2015.

This cost of oil is a driver of renewable electrical production Mexico, and its administration is seeking to diversify the generation mix between renewables and fossil fuel in order to lower costs to the utility consumers.

Currently, IIR is tracking 68 Mexico-based wind projects valued at more than $12.88 billion, with the three largest states with wind development being Tamaulipas with 18 projects valued at $2.60 billion, Baja Del Norte with seven projects valued at $2.91 billion and Oaxaca with 12 projects valued at $1.96 billion.

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