Mexico's non-hydropower renewables sector is set to become one of the market outperformersin the fast growing Latin America region. The government has set out ambitious targets for new capacitydevelopment in order to meet rising consumption demands and the market is attracting strong investorinterest due to healthy electricity prices and incentives. While wind power will remain the largest source ofrenewable energy, solar is set to make rapid gains, and numerous new projects have entered the pipeline.
Developments are also expected in terms of geothermal and the small biomass sector, creating a broadrange of opportunities for investors.
Latest Updates And Structural Trends
In July 2017, the government released the latest edition of the National Electric System DevelopmentProgram (PRODESEN) which runs from 2017 to 2031. PRODESEN sets out a broad range of ambitionsfor the energy sector, including targets for growth in wind, solar and geothermal energy which areexpected to reach capacity of 17.2GW, 7.8GW and 2.1GW, respectively, by 2031.