Mexico Energy Insights

Mexico Energy Insights

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Energy Outlook For Baja California

Baja California’s energy structure is different from the rest of Mexico, as it runs off an independent electric power grid, separate from the country’s main grid system. Despite significant solar and wind potential, the state continues to rely heavily on the importation of natural gas from the U.S.

Questions About Qualified Supply

Due to the regulatory environment with respect to new utility-scale projects in Mexico, the large suppliers have been reluctant to put forth aggressive bids at our RFP auctions like in the past. However, we are still seeing discounts of 10% to 50% for new Qualified Users in Mexico.

The Advantages Of Nearshoring In Mexico

By bringing manufacturing closer to home through nearshoring in Mexico, North American companies can optimize their operations, mitigate supply chain risks, and better respond to market dynamics. Read more about how renewable energy procurement for nearshoring in Mexico.

Electric Vehicles In Mexico

Mexico’s EV market is growing at a steady rate, and we believe its strong automotive manufacturing industry makes it well-positioned to become an EV production hub. In addition, concerns around air pollution and carbon emissions mean that a shift to EV, both for consumer vehicles and public transport, is likely to see robust growth over the next decade.

Opportunities For Battery Technologies

As Mexico establishes itself as a regional renewable energy hub, we expect battery storage to become an essential means for enhancing the flexibility of its grid system to provide more versatile energy delivery across the country.

Renewable Energy In Mexico City

CDMX is leading the renewable city movement, allocating $17.1 million a year to distributed solar capacity and aiming to add 350 MW by 2024. It also hopes to produce 2.1 million liters of biodiesel per year from residual cooking oil, starting in 2024.

Strong Fundamentals For Energy Storage

Solar power has come a long way in Mexico, with 6,160 MW of cumulative utility-scale solar capacity at the end of 2021. However, the country’s battery storage facilities are still limited, meaning that power generation is not optimized.

Top 7 Factors Driving Solar Lighting

More efficient LED lights, better solar panels, and battery technology all contribute to longer run times. Longer run times do far more than just reduce costs. They also expand potential applications. In remote areas, where conventional grid sources are either expensive or not available, increased run times are crucial.

The Benefits Of Solar Lighting And IoT

Solar-powered LED lights and the Internet of Things (IoT) are two different ways to cut expenses and improve energy efficiency. Furthermore, the synergies achieved by combining these two technologies creates far more benefits than either one of them alone.

The Benefits Of Utility-Scale Solar

The Mexico City Government has big plans to develop the solar footprint of one of the world’s largest cities, introducing the Solar City (Ciudad Solar) initiative in 2019.

Keys To Success For Wind Energy In Mexico

Mexico’s wind energy capacity has rapidly increased over the last decade, putting it in a good position to become a regional leader in wind power. The country’s wind output goes hand-in-hand with a growing solar energy sector, which contributes to Mexico’s steadily expanding renewable energy mix.

An Overview Of Renewable Energy In Mexico

Mexico lends itself to renewable energy development thanks to its favorable geographical conditions. The country enjoys around 300 days of sunlight each year, and with over 9,000 km of coastline, there is significant potential for growth across other renewable energy forms.

Solar Power In Sonora

The state of Sonora in northern Mexico has been identified by the National Autonomous University of Mexico as having the greatest solar potential in the country. If just 1% of Sonora’s land was used for solar projects it could provide enough energy to power all of Mexico.

A climate advocacy NGO called the Mexican Climate Initiative (ICM) developed a solar bond program to use a percentage of the money from the electric subsidy program to invest in solar energy projects.

An Overview Of Solar Bonds In Mexico

Recently, a climate advocacy NGO called the Mexican Climate Initiative (ICM) developed a solar bond program to use a percentage of the money from the electric subsidy program to invest in solar energy projects. The funds are used to purchase solar photovoltaic (PV) modules to be installed on the rooftops of residential houses, particularly in heavily subsidized areas.

Reducing Risks In Energy Contracts

In recent years, Mexico has experienced an increase in the number of energy providers, making the market more competitive than before. While many industrial consumers stick to companies they know because of their well-established reputation, regularly surveying the market to see what deals are available may be prudent.

A Positive Outlook For Solar Power

The market is favorable for solar energy projects thanks to low equipment costs, strong renewable energy policies, and several national solar power programs. Solar panels in Mexico cost an average of $3.07 per watt, and we expect this to decrease further as the development of solar becomes more commonplace.

The Benefits Of Onsite Solar In Mexico

Onsite generation, also known as distributed generation, has gained popularity in Mexico because of the challenging regulatory climate regarding energy power purchase agreements. Distributed generation in Mexico is classified as any system with a capacity below 500 kWp. Companies can save up to 25% with onsite solar.

Frequently Asked Questions About Energy Procurement

What does a company need to get started with energy procurement in Mexico? We generally only need the location of the facilities and one year of utility bills to analyze the viable energy procurement options for a potential client.

Lower Operating Expenses With IoT

Mexico Energy Partners helps companies to improve energy efficiency, but that needs to be followed up with continuous monitoring and management. Proper monitoring is the key to ensuring that management's plans are successfully implemented so that energy expenses remain low.

Identifying Risks In Energy Contracts

The number of energy options available to businesses and consumers expanded dramatically over the last several decades, but those new options also created new risks. Energy contract provisions can limit those risks, but market participants must know where to look.