We expect the implementation of Guadalajara’s Climate Action Plan to help the city to reduce pollution and improve the quality of life for its residents, while ultimately supporting the combat of climate change. If successful, we believe the strategy could be replicated in Mexico’s other urban areas, as well as elsewhere in Latin America.

With a burgeoning renewable energy industry and well-established shipping routes, Mexico could quickly become a major international hub for low-carbon freight and transport. This would not only boost the country’s long-term energy security but would ensure its position in the global energy market in the transition to green.

We expect the development of distributed generation in Mexico to deliver multiple benefits, including reducing greenhouse gas emissions, delivering electricity to rural communities, and decreasing the burden on the national grid system.

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.

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. 

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.

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.

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.

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.

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. 

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. 

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.