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July 2014 U.S. Embassy—Mexico City Renewable Energy Renewable Energy in Mexico: enormous wind, solar, hydro and geothermal resources Mexico has an installed effective capacity to generate around 14,501 MW from wind, solar, hydraulic (including >30MW hydro power plants), geothermal, and biomass sources, which represents 23% of Mexico’s total installed capacity for energy generation, according to ProMexico, the Mexican government agency in charge of strengthening Mexico’s trade and investment abroad. Mexico has 258 renewable electricity generation stations in operation or under construction. Close to 75% of Mexico’s capacity is concentrated in the states of Oaxaca, Baja California, Tamaulipas, and Veracruz. ProMexico estimates is that installed capacity from renewable sources will increase to 20,544 MW by 2026. Wind and hydraulic sources are projected to account for 58.6% and 27.3% of this increase, respectively, including public service, self-supply, and small-scale generation. Important Facts: Mexico has enormous theoretical potential in renewable energy: as much as 24,300 MW in solar, 40,268 MW in wind, and 40,000 MW in geothermal, in addition to excellent possibilities for biofuels (ProMexico). Mexico is a net exporter of electricity to the United States and has the potential to export considerably more, particularly from wind, if regulation and financing are in place and transmission capacity can be expanded. In 2013, hydroelectricity supplied about 11% of Mexico's electricity generation, while nonhydro renewables represented 3% of Mexico's electricity generation (EIA). Per Mexico’s 2012 climate change law, 35% of the country’s electricity must come from clean sources by 2024. Mexican law defines clean energy sources to include renewable as well as nuclear and large hydro sources. Note: Data in megawatts. Mexico Attracts Foreign Investment in Renewable Energy Mexico has an excellent geographic location and extensive renewable resource potential, making it an attractive destination for foreign investment. Although not a primary area of focus, Mexico’s recent energy reform includes some provisions that could facilitate the commercialization of renewable resources to promote a new generation and new investment opportunities, particularly in geothermal energy. Between 2003 and 2012, Mexico received approximately $7.34 billion in renewable energy investments, mainly in the states of Oaxaca and Baja California. According to ProMexico, the main investor countries were Spain, the United States, Denmark and France. Investments in renewables have grown more than 92% over the last five years (Mexico Energy & Sustainability Review). Transnational equipment suppliers and project developers consider Mexico an attractive destination for renewable energy investment. Furthermore, Mexican companies have diversified their business dealings with the sector with small-scale projects, equipment manufacturing, and marketing. Mexico has the world’s highest growth in wind energy, and is ranked #20 in the world The installed capacity for wind power generation reached 1,289 MW in 2012 of which Mexico’s Federal Electricity Commission (CFE) operates 7%. Concessionaires operate the rest under self-supply schemes. Mexico has a 40,268 MW wind power potential. However, currently only 3.2% of that capacity is utilized. The regions with most wind energy capacity are: The Isthmus of Tehuantepec (Oaxaca), La Rumorosa (Baja California), Coast of the Gulf of Mexico, in the North and Central Regions, and the Yucatan Peninsula. It is estimated that in 10 years, the wind power investment sector will exceed $20 billion (Mexico Energy & Sustainability Review).PDF Image | Renewable Energy in Mexico: enormous wind, solar, hydro and geothermal resources
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