The last months have been characterized by significant counter-reforms and infrastructure announcements that promise to reshape the country's energy landscape. With the new president and the government elected in June 2024, the prospects for the country's solar industry are better than ever! Mexico offers attractive business opportunities in shortterm for the PV, energy storage and solar thermal industry in the residential and industrial sector as well as the large-scale segment in mid/longterm!
With the National Strategy for the Electric Sector, the new government under Claudia Sheinbaum is paving the way for private investors to achieve one of the main goals: • Moving forward the energy transition in Mexico • Strengthening energy sovereignty • Clear investment plans for the private sector • Stability of electricity prices • Reduction of environmental impact and emissions
Key initiatives include increasing photovoltaic installations, enhancing system reliability, and implementing a blackout prevention strategy. The strategy promotes distributed generation, now allowing up to 0.7MW without a permit, and extends isolated supply for self-consumption to installations between 0.7 and 20MW.
The plan requires an investment of US$23.4 billion, distributed across generation, transmission, and distribution. This includes adding 13,024MW of installed capacity and reinforcing transmission and distribution networks.
Mexico’s Clean Energy Targets: 35% by 2024 37.7% by 2030 50% by 2050
The solar industry in Mexico can expect significant growth with President Sheinbaum's anticipated National Energy Plan, which prioritizes clean and renewable energy. This plan promises to bring investment, innovation, and expansion to the sector, enhancing its development and competitiveness.
Under Claudia Sheinbaum's leadership, the solar industry in Mexico anticipates a landscape rich with opportunities and growth. Her expertise in politics and environmental crisis management promises a proactive approach to renewable energy.
The solar sector can expect substantial progress under Claudia Sheinbaum's presidency. Her background as an environmental scientist and experience in sustainable public policy demonstrate a strong commitment to green energy.
Sheinbaum is likely to drive investment in solar power to combat climate change and diversify the country's energy mix.
Mexico's solar industry could see a meaningful boost with Sheinbaum's leadership. As the former head of government of Mexico City, she promoted clean energy initiatives like the Solar City program, which includes electrifying the public bus fleet and installing the world's largest urban photovoltaic solar panel plant. She has also outlined plans for a national energy strategy.
Her track record of expanding sustainable infrastructure in Mexico City suggests a dedication to renewable energy investment and development, benefiting the solar sector despite potential budgetary and economic challenges.
Claudia Sheinbaum's experience as a climate scientist and PhD in energy engineering, along with her contributions to the Intergovernmental Panel on Climate Change (IPCC) reports and her role as Secretary of the Environment for Mexico City, indicate strong support for environmental policies and climate action, including the promotion of the solar industry. National Energy Plan
International Commitments
Paris Agreement: Mexico committed to generating 35% of electricity with clean energy sources by 2024 and 50% by 2050.
United Nations Framework Convention on Climate Change. In its updated Nationally Determined Contribution (NDC) in 2022, Mexico increased its mitigation targets, targeting a 35% reduction in greenhouse gas (GHG) emissions by 2030, compared to a 22% reduction established in 2020.
Currently 27% of the energy generated in Mexico is from clean sources.
United Nations Conference on Climate Change. Mexico joined the 118 countries that have committed to tripling global renewable energy capacity by 2030 during COP28 in Dubai.
Solar Potential
85% of the national territory is optimal for solar projects.
Mexico has everything to become a solar power in six years. Mexico could have 30 GW of PV capacity by 2030. According to IRENA, Mexico has the potential to have 30 GW of installed photovoltaic capacity in 2030, of which 60% would correspond to large-scale projects and 40% to distributed generation. Mexico could have 30 GW of PV capacity by 2030. According to IRENA, Mexico has the potential to have 30 GW of installed photovoltaic capacity in 2030, of which 60% would correspond to large-scale projects and 40% to distributed generation. The industrial sector in Mexico can meet its decarbonization goals with solar thermal technologies. According to the Solar Heat Initiative, Mexico has a technical and economically feasible potential of 9 GWth of solar thermal to be installed in the industrial sector by 2030. According to Solar Payback, in just 4 branches of the industrial sector (food, chemical, pulp and paper and mining) 1.8 million m2 of solar thermal collectors could be installed, which would be equivalent to 1.2 GWth and the mitigation of 374 thousand tons of carbon.
Installed Solar Capacity
Installed photovoltaic and solar thermal capacity in Mexico at the end of 2023: Large-scale photovoltaics: 7.5 GW, source: ASOLMEX Photovoltaic distributed generation: 3.3 GW, source: CRE Solar thermal distributed generation: 4.5 GWth, source: FAMERAC
Photovoltaic: 44% of the installed capacity corresponds to distributed generation. The installed photovoltaic capacity at the end of 2023 was 10.8 GW, of which 44% corresponds to distributed generation (3.3 GW). Source: Asolmex and CRE.
The installed capacity of solar thermal is greater than distributed photovoltaic generation. According to FAMERAC data, the installed solar thermal capacity was 4.5 GWth at the end of 2023, of which 59% correspond to the residential sector, 28% to water heating for swimming pools, 6.5% to systems installed in the industrial sector and 5.8 % in the service sector.
Mexico is the second largest solar market in Latin America, both in photovoltaics and solar thermal. With 10.8 GW of PV capacity installed by the end of 2023, Mexico ranks second in Latin America, after Brazil, which has 37.5 GW. Source: ABSOLAR With 4.5 GWth of installed solar thermal capacity by the end of 2023, Mexico is the second largest market in Latin America after Brazil, which has 15.5 GWth. Source: FAMERAC and Solar Heat Worldwide 2024, IEA SHC.
Annual Market Growth
Photovoltaics in Mexico: third place in annual growth on the American continent. Mexico ranks third in terms of annual growth on the American continent along with Chile. An additional capacity of 1.6 GW was generated in both markets in 2023. Source: Global Market Outlook 2924, Solar Power Europe.
Photovoltaic distributed generation has grown steadily in recent years and will continue to grow. Photovoltaic distributed generation in Mexico registered another record with a growth of 40% in 2023. Source: Global Market Outlook 2024, Solar Power Europe. It is estimated that distributed generation will continue to grow and reach 11.8 GW of installed capacity by 2030. Source: SEDECO, CDMX. More information about the solar market in Mexico
The solar thermal market in Mexico had the highest annual growth rate in Latin America and the sixth worldwide. In 2023 it had a growth rate of 5%, exceeding Brazil's 3%. Source: Solar Heat Worldwide 2024, IEA SHC.
Mexico is a world leader in solar thermal energy for industrial processes. With 119 solar thermal systems installed in the industrial sector, Mexico is the leader in this market segment worldwide, ahead of powers such as Germany where there are only 63. Source: Solar Heat Worldwide 2024, IEA SHC. Four Mexican companies are in the ranking of suppliers that have installed the largest number of solar thermal systems for industrial processes, including the world leader. Source: Solrico
Mexico ranks fourth worldwide in the installation of solar heating systems for swimming pools after the United States, Brazil and Australia.
Electrical Energy Storage
Current landscape. While utility-scale storage has seen limited implementation, notable projects, like the solar plant in La Paz, underscore the potential for growth. However, the absence of a defined regulatory framework presents a key challenge.
Climate commitment. In 2020, collaborative efforts from the National Institute of Ecology and Climate Change (INECC), the Federal Energy Commission (CFE), and the International Energy Agency (IEA) emphasized the role of energy storage in achieving climate goals. Technical papers outlined diverse storage technologies to reduce emissions, advocating for substantial investments aligned with the Paris Agreement.
Projections and potential. As the renewable energy trajectory continues upward, forecasts predict a demand for 2.3 gigawatts of storage within the next decade. The National Electric System Development Program (PRODESEN) anticipates installing approximately 4,505 megawatts in energy storage systems from 2022 to 2036.
Regulatory momentum. Strides are being made to include energy storage systems in Electricity Market Rules and National Transmission and General Distribution Networks planning. Organizations like CONACYT and INEEL actively push for comprehensive regulations covering testing, certification, and interconnection of storage systems, promoting research and technological development.
Decarbonizing mobility. The imminent rise of electric vehicles in Mexico is steering attention toward electric chargers for electromobility, presenting a burgeoning market for forward-thinking companies More information about e-mobility in Mexico
Lithium-ion battery revolution. Following the 2022 mining law reform, LitioMx emerged as a pivotal force, overseeing lithium exploration and commercialization within Mexico. This initiative could boost national manufacturing of lithium-ion batteries, a critical component in meeting the surging demand from the electric mobility sector.
Research and innovation hub. Mexico's scientific community dedicated to energy storage is thriving, with an exponential increase in research groups since the inaugural Energy Storage Discussions in 2014 until the latest Discussions in 2023. The Energy Storage Network, established in 2017, acts as a catalyst for innovation, fostering expertise in lithium purification, active materials synthesis, and comprehensive modeling and testing.
