ProMéxico MIM


 

The Renewable Energy Industry in Mexico

Up to 2013, Mexico had an installed effective capacity to generate 64,690 MW of electricity, of which 14,891 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 Commission (CFE).


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There are currently 246 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 234 permits to generate electricity from renewable sources, reaching a total installed capacity of 7,827 MW (23% of the total capacity authorized to CRE concessionaires), of which 31% is already operating and the rest should begin operating within the next three years.


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Projections to 2027

It is estimated that by 2027 the installed capacity to generate electricity from renewable sources will increase by 21,089 MW and that wind and hydraulic sources will have the largest share, with 52% and 25%, respectively. This projection includes the modalities of public service, self-supply and distributed generation.


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Attraction of Foreign Direct Investment

Between 2003 and 2013, Mexico received approximately 11.099 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 and Germany.


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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:

Wind industry

  • Generator manufacturing. Potencia Industrial, a 100% Mexican company located in Mexico City, produces and exports to the United States Clipper turbine generators.

    The US company Dynamik Kontroll also manufactures generators in Guadalajara, Jalisco.

  • Blade manufacturing. Vientek, a joint venture between Mitsubishi and TPI Composites, produces blades in Ciudad Juárez to export to the wind market in the United States.
  • Tower manufacturing. Trinity, Tubac, CS Wind, Speco and Enertech Fabricaciones produce steel towers for the Mexican wind market.
  • Other wind energy components. Kaydon and Liebherr and Frisa manufacture bearings for wind energy.

Solar Industry

  • Photovoltaic solar module production facilities. Kaydon and Liebherr and Frisa manufacture bearings for wind energy.

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.

  • Experience. Mexico's success in the development of the automotive and electric-electronic industries, for example, provides a methodology platform specialized in infrastructure, which encourages the development of the renewable energies industry in Mexico and leverages supply chains, common support programs and synergistic advantages.

    Mexico is the only country in Latin America with integral knowledge of geothermal energy, from exploration to production. The French company Alstom established the Geothermic and Renewable Energy Cluster in Michoacán, together with the main players of the public sector, businesses and universities. Some of the project's goals are to contribute to improving the environment and to develop the area economically, socially and technologically.

  • Talent. According to the National Association of Universities and Higher Education Institutions information, annually 110 thousand students of engineering, manufacturing and construction graduated from Mexican institutions. From UNESCO's 2012 data, Mexico had 26% more graduates per capita of such programs than in the United States.
  • Costs. Mexico offers 11.5% savings in manufacturing costs of advanced batteries in the green energy industry, compared to the United States.

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