The Renewable Energy Industry in Mexico
Up to 2012, Mexico had an installed effective capacity to generate
63,195 MW of electricity, of which 14,501 MW came from renewable sources
(wind, solar, hydraulic, geothermal and biomass). This accounts for 23%
of total installed capacity according to ProMéxico's estimates with data
by the Energy Regulatory Commission (CRE) and the Federal Electricity
There are currently 258 power stations in Mexico that are operating or under construction to generate electricity from renewable sources; Oaxaca and Veracruz are the states with the largest number of wind and biomass projects, respectively.
Currently, the CRE has granted 157 permits to generate electricity from renewable sources, reaching a total installed capacity of 5,011.7 MW (16.6% of the total capacity authorized to CRE concessionaires), of which 40.0% is already operating and the rest should begin operating within the next three years.
Projections to 2026
It is estimated that by 2026 the installed capacity to generate electricity from renewable sources will increase by 20,544 MW and that wind and hydraulic sources will have the largest share, with 58.6% and 27.3%, respectively. This projection includes the modalities of public service, self-supply and distributed generation.
Attraction of Foreign Direct Investment
Between 2003 and 2012, Mexico received approximately 7.343 billion dollars in investments in the renewable energies industry, mainly in the states of Oaxaca and Baja California. The main investor countries were Spain, the United States, Denmark and France.
Companies in Mexico
More and more transnationals from the renewable energies industry are opting to invest in Mexico due to its appeal and reliability. Both project developers and equipment suppliers are present in the country. In addition, several domestic companies have penetrated the local market with small-scale projects involved in development, manufacturing and selling renewable equipment and/or have decided to diversify their business towards the sustainable energy industry.
There are several production centers in Mexico; some examples by source type and activity are:
Strengths of the Industry in Mexico
In addition to its excellent geographic location and abundant natural resources, Mexico has huge potential for equipment manufacturing due to its low industrial costs and highly skilled workforce.