Mexico forecasts annual renewables growth of 7.4%

The ministry has published a series of perspectives for the energy sector, and the part focusing on renewable energy outlines legislative and regulatory changes as a result of the energy reform, and policies that will allow renewable energy to become more important in the energy mix.

Mexico expects its renewable energy generation capacity to increase by 7.4% annually until 2031. Specifically, the energy ministry predicts solar will grow around 3,54% to 13,396GWh.

Also read: Outlook 2018: Mexico's energy sector to see big investments

Promulgated in December 2014, Mexico's energy transition law stipulates that 25% of power must come from renewable sources by 2018; 30% by 2021; 35% by 2024; 45% by 2036; and 60% by 2050. In 2016, 15.4% of Mexico's electricity came from renewables, dominated by wind and solar. Compared with the previous year, 2016 renewable capacity growth was above the global average of 8.8% and reached 10.17%, or 2,011,332MW.

In addition to outlining opportunities for investors, the legislation also creates a roadmap to achieve those goals and empowers the environmental protection agency Profepa to inspect power stations.

The government also outlined plans for the expansion of the national grid, including intentions to link the states of Baja California and Baja California Sur to it via transmission lines that will be put to tender soon.

Also read: Baja California grid link seen spurring renewables growth

Furthermore, Mexico is aligning its clean energy goals with those of the US and Canada, as the three countries aim to generate 50% of their electricity from clean sources by 2025.

The renewable energy perspectives also detail the benefits of the country implementing distributed generation (DG). According to the government, the country has the potential to install 19,780MW of solar DG by 2030.

Mexico will hold its first medium-term electric power auction on March 5.