Market Trends of Mexico Wind Energy Industry
Onshore Wind Power is Expected to Dominate the Mexican Wind Energy Market
- During 2022, Mexico registered an increase of about 2.2% in its installed wind power capacity. The country installed 154 MW of new wind power capacity, which increased the total installed wind power capacity to 7312 MW in 2022.
- Moreover, the country has a policy in place under its energy transition law to generate half of its electricity using clean energy sources by 2034. This is supported by clean energy certificate (CEC) requirements and long-term electricity auctions. The Mexican government was primarily focusing on liberalizing the electricity market.
- In addition, the opening of the industry to private and foreign investments may drive the onshore wind energy market during the forecast period.
- Furthermore, the production of wind power in the country was initially driven by environmental concerns. However, these concerns have been superseded by commercial interests. Moreover, the increased reliability convinced large companies to invest in renewable energies, such as wind, to fulfill the increasing demand for electricity.
- In January 2023, the government of Mexico announced the Sonora plan, which aims at investments of USD 48 billion in solar parks in Sonora state and wind farms in Oaxaca by 2030.
- Hence, with several onshore wind energy projects under operation and others in the planning and construction phase, owing to investment and government policies, the Mexican wind energy market is expected to grow further during the forecast period.
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Increasing Investment in Wind Energy Likely to Drive the Market
- In 2022, Mexico installed 154 MW of new wind power capacity, which increased the total installed wind power capacity to 7,312 MW. Though the country-initiated wind power production, due to increasing environmental concerns, the market is currently largely driven by commercial interests.
- Moreover, factors like escalating demand for renewable energy, favorable government policies, and decreasing cost of equipment are attracting foreign investors for higher investment in the Mexican wind energy market.
- Additionally, increasing electricity demand is expected to drive the demand for more green power-generating courses like wind energy. Electricity generation in the country grew from 310 TWH in 2015 to 340 TWh in 2022.
- In Tamaulipas, there are only 2.3 MW in operation with a wind potential of 22,558 MW. The State Energy Commission also suspended at least 30 wind projects for lack of transmission lines from the CFE3. Thus, in order to boost generation, SENER announced an investment of approximately MXN 8 billion aimed at developing the necessary infrastructure.
- Additionally, in February 2023, the Mexican government announced the possible installation of 4 wind farms that would be managed by CFE and financed by US banks.
- Hence, the aforementioned factors, such as investment and policies, are likely to drive the market studied during the forecast period.
