Solar diesel hybrid storage project financing options in Mexico 2030

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.

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.

Will targeted grid upgrades benefit solar in Mexico?

Targeted grid upgrades, if any, for wind, will benefit solar as well because solar resources exist in all areas of the country. Solar potential in Mexico is six times larger than wind, and the technology complements wind generation very well. The solar industry has generated more than 70,000 jobs1 in Mexico.

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.

Should energy storage be considered a transmission and distribution asset in Mexico?

In Mexico, defining energy storage as a generation or a transmission and distribution asset is not only critical to establish revenue streams, but also to determine whether EST will be able to operate under a regime of free competition.

Should energy storage be regulated in Mexico?

5.2.1. Mexico Energy storage appears scarcely in Mexican legislation and the few regulations that mention it leave the door open to potentially consider EST as either generation assets or transmission and distribution assets . If EST were regulated as generation assets, they could operate under a regime of free competition.