Wind solar storage project financing options in Mexico 2030

Will energy nationalization restrict foreign investment in Mexico?

Further, AMLO has repeatedly mentioned energy nationalization which could restrict foreign investment in the sector. With energy demand expected to grow about 3% to 4% annually, Mexico must expand its renewable energy production to meet its climate goals and support a global green transition.

How can Mexico promote energy storage?

To accelerate investments and promote the formation of a storage market, Mexico should introduce technology-push and market-pull policies simultaneously. Procurement targets could be used if policymakers decided that energy storage is a short-term priority, as in the case of the US.

Should energy storage be a priority in Mexico?

If energy storage deployment is considered a priority in the following years, Mexico could accelerate investments through a mix of storage procurement targets and financial incentives. A strong storage market can also be built over time by offering rebates, loans, investment grants, tax credits or other financial incentives.

How big is Mexico's solar energy industry?

Mexico’s solar energy industry is the second biggest in Latin America, after Brazil, with a capacity of over 7 GW over installed solar photovoltaic (PV) in 2021. It also has a significant wind power capacity of roughly 7.7 GW, and 976 MW of geothermal power generation.

How many solar power plants will the CFE develop in 2025?

To do so, the CFE plans to develop 7 wind projects, 9 solar PV power plants (673 MW), 5 natural gas-fired CCGT power plants and one internal combustion project (240 MW) over a six-year period. Tenders will be launched for the development of the projects by the end of April 2025.

How can est increase the profitability of wind and solar PV?

For example, EST can increase the profitability of wind and solar PV by avoiding curtailment or by increasing self-consumption . Therefore, it can be expected that stronger energy storage policies will be developed in jurisdictions that anticipate a strong penetration of VRE .