Mexican Energy Reform: Releasing Power & Renewable Energy

04/01/2014

Mexico is among the world’s highest-potential producers of renewable energy. It has almost double the solar radiation and photovoltaic capacity of Germany, the country with the highest installed solar capacity. The so-called “Ring of Fire” ranks Mexico fourth in the world in the production of geothermal electricity, even though it currently taps only about 10 percent of its potential. As for wind energy, while the installed capacity has grown over 600 percent in the last five years to a current 1,200 megawatts (MW), this is still only a fraction of the potential total capacity of over 40,000 MW.

Mexico has one of the world’s most ambitious clean energy strategies that targets 35 percent of total power generation from renewables by 2024. As of 2012, the installed capacity for power generation through renewable energy was at 23 percent, which is still far from the targeted 35 percent. According to Mexico’s Ministry of Energy, as of September 2013, the gross generation of electricity in Mexico was 22,008 gigawatt hours (GWh).

Excerpted from the World Bank, Handshake, IFC Quarterly Journal on Public-Private Partnerships, Issue #13, April 2014. To read the full article, click here (see p. 58).

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