Industry profile

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 in Spanish).

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:

Wind industry

Generator manufacturing. Potencia Industrial, a 100% Mexican company located in Mexico City, produces generators for Clipper turbines that are exported to the United States.

Paddle manufacturing. Mitsubishi Heavy Industries de México, S.A. de C.V. produces paddles in Ciudad Juarez to export them to the wind market in the United States. Vientek, a joint venture between Mitsubishi and TPI Composites, is another company that produces paddles for wind turbines.

Tower manufacturing. Trinity, Tubac, CS Wind, Speco and Enertech Fabricaciones manufacture steel towers for Mexico's wind market.

Other wind power components. Kaydon and Liebherr and Frisa manufacture bearings for the wind power industry.

Solar Industry

Photovoltaic solar module production plants. Kyocera, Sanyo Energy, Siliken, Solartec and BP Solar together with Jabil Circuit have production plants.

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.

Experience. Mexico's success in the development of industries such as the automotive and electric-electronic contributes to offer a methodology platform that specializes in infrastructure and favors the development of the renewable energy industry in the country, enabling supply chains, common support programs and synergic advantages to be optimized.

Talent. According to the Public Education Ministry, around 115,000 engineering and technology students graduate from Mexican institutions every year. According to UNESCO's data for 2010, there are 18% more graduates from engineering, manufacturing and construction per capita in Mexico than in the United States.

Costs.Compared to the United States, Mexico offers 12.9% savings in manufacturing costs in the green energy industry.