Mexico Renewable Energy Market Overview, 2030

The renewable energy market in Mexico has experienced considerable expansion over the last few decades, propelled by the nation's dedication to lowering its carbon emissions, enhancing energy security, and drawing in foreign investments. Traditionally, Mexico has depended significantly on fossil fuels for electricity production, with a considerable portion of its energy derived from oil, natural gas, and coal. Nevertheless, recent changes in policy and increasing apprehensions regarding climate change have motivated the nation to broaden its energy portfolio and boost the proportion of renewables in its power generation. Mexico's renewable energy development gathered speed in the early 2000s with the initiation of several measures designed to encourage clean energy. In 2008, the country established ambitious targets for renewable energy, and in 2012, it implemented a comprehensive energy reform that established the groundwork for the formation of a competitive renewable energy market. This reform encompassed market liberalization, regulatory modifications, and the establishment of mechanisms such as power purchase agreements (PPAs) to lure investments in renewable resources. The pivotal Energy Transition Law (2015) further solidified Mexico's commitment to clean energy by establishing a goal of generating 35% of its electricity from clean sources by 2024. Additionally, Mexico instituted an auction system to acquire electricity from renewable sources at competitive rates, leading to substantial investments in wind, solar, and geothermal energy projects. Currently, solar and wind energy stand as the foremost renewable energy sources in Mexico, with the nation housing one of the largest wind farms in Latin America, the Eólica del Sur project located in Oaxaca. Geothermal energy also holds a crucial position, as Mexico ranks among the top producers of geothermal energy worldwide, featuring key facilities in the Chihuahua and Baja California areas. The renewable energy domain in Mexico is constantly advancing, bolstered by a favorable investment atmosphere, innovative policy frameworks, and an increasing demand for clean energy from both local and global markets.

According to the research report, ""Mexico Renewable Energy Market Overview, 2030,"" published by Bonafide Research, the Mexico Renewable Energy market is anticipated to add to more than USD 11.75 Billion by 2025–30. The renewable energy market in Mexico has experienced considerable expansion over the last few decades, propelled by the nation's dedication to lowering its carbon emissions, enhancing energy security, and drawing in foreign investments. Traditionally, Mexico has depended significantly on fossil fuels for electricity production, with a considerable portion of its energy derived from oil, natural gas, and coal. Nevertheless, recent changes in policy and increasing apprehensions regarding climate change have motivated the nation to broaden its energy portfolio and boost the proportion of renewables in its power generation. Mexico's renewable energy development gathered speed in the early 2000s with the initiation of several measures designed to encourage clean energy. In 2008, the country established ambitious targets for renewable energy, and in 2012, it implemented a comprehensive energy reform that established the groundwork for the formation of a competitive renewable energy market. This reform encompassed market liberalization, regulatory modifications, and the establishment of mechanisms such as power purchase agreements (PPAs) to lure investments in renewable resources. The pivotal Energy Transition Law (2015) further solidified Mexico's commitment to clean energy by establishing a goal of generating 35% of its electricity from clean sources by 2024. Additionally, Mexico instituted an auction system to acquire electricity from renewable sources at competitive rates, leading to substantial investments in wind, solar, and geothermal energy projects. Currently, solar and wind energy stand as the foremost renewable energy sources in Mexico, with the nation housing one of the largest wind farms in Latin America, the Eólica del Sur project located in Oaxaca. Geothermal energy also holds a crucial position, as Mexico ranks among the top producers of geothermal energy worldwide, featuring key facilities in the Chihuahua and Baja California areas.

Mexico's renewable energy sector is varied, with major contributions from hydropower, wind power, solar energy, bioenergy, and geothermal energy. Each of these energy sources plays a vital role in the nation's shift towards cleaner, more sustainable energy production. Traditionally, hydropower has been a significant source of renewable energy in Mexico, representing a large part of the country's electricity output. Although its proportion has diminished over the years, hydropower continues to be a consistent and dependable energy source, especially in regions with rivers like Veracruz and Chiapas. The nation has focused on increasing small and medium-sized hydropower projects to support larger installations and address regional energy demands. Wind power is among the fastest-expanding segments in Mexico’s renewable energy sector. The nation possesses extensive wind resources, particularly in the Oaxaca area, known for having some of the finest wind conditions globally. In recent years, Mexico’s wind capacity has dramatically grown, propelled by the government's dedication to renewable energy and the decreasing costs of wind technology. As of 2023, Mexico leads Latin America in wind energy production, featuring numerous sizable wind farms that add to the national electricity grid. Solar energy is swiftly emerging as one of Mexico’s most crucial renewable energy sources. The country benefits from high solar radiation, especially in the northern areas, including Sonora and Baja California. The rapid drop in solar panel costs, along with supportive regulations like the Energy Transition Law, has rendered solar power increasingly feasible for both home and business use. It is anticipated that Mexico’s solar capacity will keep increasing, with many new large-scale initiatives in progress. Bioenergy serves as another significant element of Mexico’s renewable energy market, particularly through the generation of biogas and biomass. Agricultural and forestry residues, notably from the sugarcane and corn sectors, are utilized for bioenergy production. Bioenergy is essential for rural development by offering off-grid solutions and creating local job opportunities.

Mexico's renewable energy market caters to several end-users, including industrial, residential, and commercial sectors, all of which contribute to the rising demand for clean energy within the nation. The variety of end-users is essential in promoting the adoption of renewable energy throughout Mexico. The industrial sector is one of the most significant consumers of renewable energy in Mexico. Sectors like manufacturing, mining, and food processing heavily depend on electricity, and numerous companies have progressively turned to renewable sources like solar, wind, and biomass. Transitioning to renewables enables industries to minimize their carbon footprint and benefit from cost reductions, especially with the decreasing prices of solar and wind energy. Mexico's energy auctions, which permit businesses to secure long-lasting agreements for renewable energy, have been pivotal in fostering industrial uptake. Additionally, renewable energy is viewed as a way to ensure energy reliability for industries in isolated or off-grid areas. The residential sector has experienced remarkable expansion in the uptake of renewable energy, specifically solar power. With ample sunlight throughout the year, numerous homeowners in Mexico, especially in regions such as Sonora and Baja California, have invested in rooftop solar panels. Government incentives and support programs, like subsidies for solar installations, have further propelled residential uptake. Solar energy enables homeowners to decrease their energy expenses, enhance energy independence, and lessen their ecological impact. The increasing use of energy-efficient appliances and off-grid solar options also contributes to the rising adoption of renewables in residential properties. The commercial sector in Mexico, which encompasses retailers, offices, hotels, and businesses, has progressively embraced renewable energy solutions. Commercial entities are driven by financial benefits, energy savings, and the opportunity to fulfill sustainability objectives. Solar power is the predominant renewable energy source in this sector, with numerous businesses installing solar panels on rooftops or entering into power purchase agreements (PPAs) with renewable energy suppliers.


Considered in this report
• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report
• Renewable Energy Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type
• Hydropower
• Wind Power
• Solar Energy
• Bioenergy
• Geothermal
• Others

By End-User
• Industrial
• Residential
• Commercial

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.