Mexico Poised to Approve $12.5 Billion in Renewable Energy Projects

Mexico's state power utility is poised to approve around 60 renewable energy projects, primarily solar, which could add 8.2 GW of new generation capacity to the country's total, according to unnamed sources. The Federal Electricity Commission could potentially approve fewer than 60 projects. These projects are part of a broader aim to achieve around 32 GW of new power generation capacity by 2030, as outlined in President Claudia Scheinbaum's energy transition plans.

Of the 32 GW, about 70% are expected to come from alternative energy sources such as solar and wind. However, the share of alternative energy in total new capacity has slightly decreased to around 30%. President Scheinbaum has emphasized Mexico's abundant clean energy resources, including sun and wind, which offer lower environmental impacts.

The government is actively seeking to transition towards greater renewable energy participation by 2030. Earlier this month, the energy ministry reported 42 solar projects with a combined capacity of 6.86 GW and 13 wind projects with a combined capacity of nearly 4 GW in the pipeline. The Federal Electricity Commission holds participation in around 70% of this pipeline.

In addition, there are 4.44 GW of solar projects awaiting allocation and 2.16 GW of wind capacity awaiting allocation. President Scheinbaum's energy policies prioritize private companies in Mexico's energy sector, with the state utility expected to generate at least 54% of the country's electricity. Private generators are allocated the remaining 46%.

As a result of these reforms, energy minister Luz Elena Gonzalez revealed that private companies are prepared to invest $4.75 billion in building 3.32 GW of alternative generation capacity across 20 separate projects.