The Renewable Energy Industry in Mexico
As of February 2012, Mexico had an effective installed capacity to
generate electrical power of 64,312 MW, of which 14,357 MW were from
renewable sources (wind, solar, hydraulic, geothermal and biomass). This
accounts for 22.3% of the total installed capacity, according to
estimates made by ProMéxico and data from the Energy Regulating
Commission (CRE in Spanish) and the Federal Electricity Commission (CFE
There are currently 204 renewable energy stations operating or under construction in Mexico; Oaxaca and Veracruz are the states with the largest number of wind and biomass projects, respectively.
Currently, the CRE has granted 124 permits to generate electricity from renewable sources, to reach a total installed capacity of 4,179.4 MW (14.4% of the total capacity authorized to CRE permit holders), of which 43.6% is already operating and the rest should begin operating in the next three years.
Projections for 2025
It is estimated that by 2025 the installed capacity for renewable energy generation will increase by 18,716 MW, of which wind and hydraulic sources will have the largest share, with 60.2% and 24.3%, respectively. This forecast includes public service, self-sufficiency and distributed generation as types of production.
Attraction of Foreign Direct Investment
Between 2003 and August 2012, Mexico received approximately US$6.902 billion in investments in the renewable energy industry; this investment was concentrated in the states of Guanajuato, Oaxaca and Baja California. The main investor countries were Spain, the United States and France.
Companies in Mexico
More and more transnational companies from the renewable energy industry choose to invest in Mexico because they consider it an attractive and reliable destination. Both project developers and equipment suppliers have presence in Mexico. In addition, several Mexican firms have penetrated the domestic market in the development of small-scale projects and in the manufacturing and sale of equipment for renewable energies, or have decided to diversify their business to the sustainable energy industry.
There are numerous production centers in Mexico, for example:
Strengths of the Industry in Mexico
In addition to its excellent geographic location and abundance of natural resources, Mexico has a huge potential to manufacture equipment because of its low industrial costs and highly skilled workforce.