Mexico Renewable Energy Market Outlook

According to the latest report by Expert Market Research (EMR), the Mexico renewable energy market is poised for robust expansion over the forecast period, driven by the country’s strategic commitment to clean energy and increasing investments in sustainable infrastructure. The Mexico renewable energy market is projected to grow at a compound annual growth rate (CAGR) of 8.50% between 2025 and 2034, signalling a transformative shift in Mexico’s energy landscape. Government policies, international collaborations, and technological innovations are collectively fostering a favourable environment for renewable energy development in the region.

As Mexico seeks to reduce its dependence on fossil fuels and honour its commitments under global climate accords, the demand for renewable energy has witnessed considerable momentum. Wind, solar, hydroelectric, and biomass energy sources are increasingly being adopted across the public and private sectors, presenting a wealth of opportunities for stakeholders in the clean energy value chain.

Mexico Renewable Energy Market Size and Share

In recent years, the market size of Mexico's renewable energy sector has significantly expanded due to sustained investment and supportive regulatory measures. Solar energy currently holds a dominant share within the market, largely owing to Mexico’s favourable geographic conditions that allow for high solar irradiance throughout the year. Wind energy is another leading segment, particularly in regions like Oaxaca and Tamaulipas, where high wind speeds have enabled the successful deployment of large-scale wind farms.

As of 2024, Mexico boasts over 30 GW of installed renewable energy capacity, with solar and wind comprising nearly 70% of this figure. By 2034, the market is expected to witness a substantial increase in capacity additions, with solar photovoltaic (PV) installations alone projected to account for a major portion of new projects. This expansion will allow renewable energy to comprise a growing share of the national energy mix, in alignment with Mexico’s long-term sustainability goals.

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Mexico Renewable Energy Market Trends

One of the most notable trends in the Mexico renewable energy market is the decentralisation of power generation. There has been a significant rise in distributed energy systems, particularly in urban and semi-urban areas, where residential and commercial consumers are increasingly investing in rooftop solar panels. This trend not only helps in reducing energy costs but also improves energy security and grid resilience.

Another key trend is the growing integration of digital technologies such as smart grids, energy storage systems, and blockchain-based energy trading platforms. These advancements are enabling more efficient management of renewable energy resources, improving forecasting capabilities, and facilitating peer-to-peer energy transactions.

Moreover, public-private partnerships and foreign direct investments are increasingly becoming central to the development of Mexico’s renewable energy infrastructure. Several international energy companies have entered the market through joint ventures and long-term investment plans, thereby contributing to technology transfer and capacity building.

Drivers of Growth

A number of factors are driving the growth of the renewable energy market in Mexico:

  • Government Policy and Regulation: Mexico has set ambitious clean energy targets under its Energy Transition Law, aiming to generate 35% of its electricity from clean sources by 2030 and 50% by 2050. These policy frameworks offer regulatory certainty and attract investment.

  • Environmental Commitments: As part of the Paris Agreement, Mexico has pledged to reduce greenhouse gas emissions by 22% by 2030. This environmental commitment is acting as a catalyst for accelerating renewable energy deployment.

  • Economic Diversification: The Mexican government views renewable energy as a strategic sector for economic diversification, especially in light of global oil price volatility and the long-term decline of fossil fuel competitiveness.

  • Energy Demand Growth: With rising urbanisation and industrialisation, electricity demand in Mexico is steadily increasing. Renewable energy offers a sustainable solution to meet this demand without exacerbating environmental degradation.

  • Technological Advancements: Improvements in solar PV efficiency, wind turbine design, and energy storage solutions have significantly reduced the levelised cost of electricity (LCOE), making renewables increasingly cost-competitive with conventional energy sources.

Technology and Advancement

The Mexico renewable energy market is witnessing rapid technological advancement, particularly in the fields of solar and wind energy. The efficiency of solar panels has significantly improved due to innovations in photovoltaic cell materials and bifacial panel designs, which can capture sunlight from both sides of the panel.

In the wind sector, modern turbines are now capable of generating more electricity at lower wind speeds, which enhances their viability in a broader range of geographic locations. Additionally, the adoption of hybrid systems combining solar, wind, and battery storage is gaining traction, allowing for a more stable and reliable power supply.

Energy storage technologies, particularly lithium-ion batteries, are also becoming more prevalent, enabling grid stabilisation and better integration of intermittent renewable sources. Meanwhile, advancements in predictive analytics and machine learning are being employed to optimise energy production and maintenance schedules for renewable energy assets.

Mexico Renewable Energy Market Segmentation

The market can be divided based on type.

Breakup by Type

  • Solar
  • Wind
  • Hydro
  • Geothermal
  • Others

Competitive Landscape

Some of the major key players explored in the report by Expert Market Research are as follows:

  • Enel Spa
  • Siemens AG
  • RWE Aktiengesellschaft
  • ENGIE SA
  • Iberdrola, SA
  • Canadian Solar Inc.
  • Dominion Energy, Inc.
  • ACCIONA SA
  • Électricité de France S.A.
  • Others

Mexico Renewable Energy Market Forecast

The future of the Mexico renewable energy market appears promising, with projections indicating robust growth over the next decade. By 2034, renewable energy is expected to comprise a significantly larger portion of the national energy mix, underpinned by continued investment in solar and wind projects, supportive policy frameworks, and technological advancements.

The total installed capacity of renewable energy in Mexico is forecast to exceed 60 GW by 2034, with solar PV expected to remain the dominant source, followed by wind and hydroelectric power. The market will also see increased adoption of energy storage and smart grid technologies, which will play a pivotal role in managing supply-demand dynamics and enhancing energy reliability.

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