Mexico is committed to expanding geothermal energy as part of its strategies to reach its clean energy targets. Although most geothermal plans are owned by the state’s Federal Electricity Commission (CFE), Mexico has implemented a set of regulations that encourage private developers to participate in the electric market.

The reforms introduced Power Purchase Agreements (PPAs) as one of the main ways to trade energy. A PPA is a mid- or long-term contract to purchase a certain amount of energy to be delivered in the future at a fixed price. 

Mexico has been one of the Latin American countries who has embraced climate change action.  For instance, in March 2015, it submitted a climate action plan to the UN Framework Convention on Climate Change (UNFCCC), being the first developing country to do so.  As a part of its efforts, Mexico has set policies and laws to increase energy efficiency promote clean energy.

Mexico Energy Partners was delighted to have co-sponsored this year’s event, in Norway and Scotland, showcasing Mexico’s energy sector opportunities to private investors.

Mexico’s power grid will have to be expanded and modernized to handle the large amount of renewable projects that will need to be connected to the grid. Mexico’s Minister of Energy said that “over the next 15 years the country aims to build almost 25,000km of new power transmission lines, achieving an investment of at least $13.4 billion.”