Mexico Power Market Size
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 91.90 gigawatt |
| Market Volume (2029) | 108.70 gigawatt |
| CAGR (2024 - 2029) | > 3.40 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Mexico Power Market Analysis
The Mexico Power Market size in terms of installed base is expected to grow from 91.90 gigawatt in 2024 to 108.70 gigawatt by 2029, at a CAGR of greater than 3.40% during the forecast period (2024-2029).
- Over the medium period, the market is substantially driven by factors like high power demand due to the growing population and upcoming power generation projects, mainly to go parallel with the pace of urbanization in the country.
- On the other hand, the new government's intentions to reduce private investments and make the sector more state-owned can pose a significant threat to market growth.
- Nevertheless, Mexico's General Climate Change Law has set a target of generating 35% of total electricity from renewable sources by 2024. Such a target would create an opportunity for power-renewable companies to set up various projects to meet the target for the country during the upcoming years.
Mexico Power Market Trends
Thermal Power Generation Expected to Dominate the Market
- Thermal power plants, consisting of oil-based, coal-based, nuclear, and natural-gas-based power generation in the country, will maintain their dominance by 2030. The new government has recently given dispatch priority to thermal power plants in the coming years, which can increase the share of thermal power in the country, which, as of 2022, formed the major part of 72% of the electricity generation mix.
- Though wind and solar power generation have massively replaced coal technology in the last five years, this will not be the future trend. The country has many upcoming coal- and natural gas-based power projects. The oil-fired power sector will also rise but remain behind the gas-fired generation in the coming years.
- For instance, in January 2023, Mexico’s state power company Comisión Federal de Electricidad (CFE) is targeting to bring 1.5 GW of natural gas-fired power generation capacity online on the Yucatán Peninsula by summer 2024.
- In February 2022, Mexico’s Federal Electricity Commission (CFE) awarded a contract to the Spanish companies Técnicas Reunidas, TSK, and Mitsubishi Power, which will provide the turbine technology. The contract includes the development of the new natural gas combined cycle plants of Valladolid and Mérida, both in the state of Yucatán, worth USD 355 million.
- Such developments in the country are expected to provide robust growth to the power market in Mexico.
Expansion of Transmission and Distribution Network Expected to Drive the Market
- The transmission network of power in Mexico has witnessed a steady development over the last decade to respond to the growing power demand and accessibility issues.
- The energy demand in Mexico is proliferating due to increasing urbanization and population. According to the Statistical Review of World Energy Data, in 2022, Mexico's primary energy consumption was 8.73 Exajoules, an annual increase of 9.2%. Thus, to cope with the growing demand, Mexico's Federal Electricity Commission (CFE) has s begun to define and execute a series of transmission line projects as part of the National Electric System Development Program (Prodesen)
- The Mexican government plans to invest USD 107 million to develop these six transmission lines. Moreover, companies from Asia are relocating their operations closer to Mexico, which has been a factor in reduced transportation costs, shorter supply chains, and easier access to the thriving North American market.
- Some other key projects were also planned for 2021-2035. One is the modernization of the Tecamachalco–Tlacotepec transmission line project in Tlacotepec and neighboring towns in Puebla. It is a 33 km transmission line with a voltage of 115kV. The expected commissioning year of the project is 2024.
- The new transmission plans are expected to boost the country's power market due to such developments.
Mexico Power Industry Overview
The Mexican power market is moderately fragmented. Some of the major companies operating in the market (in no particular order) include Enel SpA, Comision Federal de Electricidad (CFE), Iberdrola SA, Acciona SA, and Vive Energia.
Mexico Power Market Leaders
Enel S.p.A.
Comision Federal de Electricidad
Iberdrola SA
Vive Energia
Acciona SA
*Disclaimer: Major Players sorted in no particular order
Mexico Power Market News
- Apr 2023: The Mexican government agreed to buy 13 power plants from the Spanish energy company Iberdrola. The deal is worth USD 6 billion. The government also plans to give state-owned power company Comision Federal de Electricidad (CFE) majority control over the electricity market.
- Nov 2022: The United States and Mexico, both country's bilateral agreement on nuclear energy, entered into force to enhance cooperation on energy security. The agreement enables the peaceful transfer of nuclear material, equipment, and information from the United States in adherence with nonproliferation requirements.
Mexico Power Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Electricity Generation Mix, 2022
4.3 Power Generation Installed Capacity and Forecast, till 2029
4.4 Recent Trends and Developments
4.5 Government Policies and Regulations
4.6 Market Dynamics
4.6.1 Drivers
4.6.1.1 High Power Demand due to the Growing Population
4.6.1.2 Upcoming Power Generation Projects
4.6.2 Restraints
4.6.2.1 The New Government's Intentions to Reduce Private Investments
4.7 Supply Chain Analysis
4.8 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Power Generation
5.1.1 Thermal
5.1.2 Hydro
5.1.3 Renewables
5.1.4 Other Power Generation
5.2 Power Transmission and Distribution (T&D)
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Enel SpA
6.3.2 Comision Federal de Electricidad
6.3.3 Iberdrola SA
6.3.4 Acciona SA
6.3.5 Vive Energia
6.3.6 Sempra Energy
6.3.7 Siemens Gamesa Renewable Energy SA
6.3.8 Jinko Solar Holdings Co. Ltd
6.3.9 IENOVA
6.3.10 Aldesa Energias Renovables SLU
- *List Not Exhaustive
6.4 Market Ranking
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 The Country's Target of Generating 35% of Total Electricity from Renewable Sources by 2024
Mexico Power Industry Segmentation
Power generation is generated through various primary sources such as coal, hydro, solar, thermal, etc. In utilities, it is a step before its delivery to end users. Transmission and distribution take place after the process. Under this, the power generated is distributed via high-voltage lines (transmission lines) and low-voltage lines (distribution lines) per the end user's requirements.
The Mexican power market is segmented by power generation and power transmission and distribution (T&D). By power generation, the market is segmented into thermal, hydro, renewables, and others. The market sizing and forecasts for each segment in power generation have been done based on installed capacity.
| Power Generation | |
| Thermal | |
| Hydro | |
| Renewables | |
| Other Power Generation |
Mexico Power Market Research FAQs
How big is the Mexico Power Market?
The Mexico Power Market size is expected to reach 91.90 gigawatt in 2024 and grow at a CAGR of greater than 3.40% to reach 108.70 gigawatt by 2029.
What is the current Mexico Power Market size?
In 2024, the Mexico Power Market size is expected to reach 91.90 gigawatt.
Who are the key players in Mexico Power Market?
Enel S.p.A., Comision Federal de Electricidad, Iberdrola SA, Vive Energia and Acciona SA are the major companies operating in the Mexico Power Market.
What years does this Mexico Power Market cover, and what was the market size in 2023?
In 2023, the Mexico Power Market size was estimated at 88.78 gigawatt. The report covers the Mexico Power Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Mexico Power Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Mexico Electricity Industry Report
Statistics for the 2024 Mexico Electricity market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Mexico Electricity analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
