Energy Sector in Mexico

Mexico’s Changing Electric Power Sector

Mexico’s electric power industry experienced substantial growth in recent years but now faces new challenges. Power generation increased from 260,498 GWh to 319,364 GWh between 2012 and 2016, a gain of over 22% in four years. However, the election of Andrés Manuel López Obrador (popularly known as AMLO) as President […]

Risks from Reliance on US Natural Gas

Over the last 20 years, Mexican natural gas scenario changed dramatically. During the nineties, a decrease in natural gas prices and ongoing improvements in combined cycle technology resulted in a large substitution of oil power stations by natural gas and combined cycle plants. Oil’s share of the electricity mix declined […]

Opportunities in Natural Gas in Mexico

Where’s the Opportunity for Investors? Since 2012, eight new cross-border pipelines were commissioned increasing in gas flow capacity from 2.75 billion cubic feet per day (Bcm/d) to more than 11 Bcf/d up to the end of 2018. Net Midstream (Next Era), the consortium Energy Transfer – Carso Energy, and Spectra […]

Geothermal in Mexico: The Ring of Fire

By: Paola Moreno, Director Earth’s natural heat reserves are immense. The Electric Power Research Institute (EPRI) has estimated the stored thermal energy below the continental crust to be roughly 5 million times the global electricity consumed in 2016. Mexico is located over the Ring of Fire, extracting heat from the […]

Mexico’s Electricity Market

Since 2015, the Mexican wholesale electricity market has been operating as a competitive market. However, there are certain restrictions to guarantee fairness for all stakeholders and to meet the national clean energy goals. Before the energy reform, the electric system in Mexico was a simple scheme with two main stakeholders. […]

Financing Renewable Energy in Mexico

By Paola Moreno Mexico has been one of the Latin American countries who has embraced climate change action. For instance, in March 2015, it submitted a climate action plan to the UN Framework Convention on Climate Change (UNFCCC), being the first developing country to do so. As a part of its […]