Industry profile

The Renewable Energy Industry in Mexico

Currently, Mexico has an installed capacity to generate 1,924.8 MW (megawatts) of electricity from renewable energy sources. Besides offering great potential for the generating clean energy, Mexico has the ability to become a key global provider of renewable energy equipment, mainly for the NAFTA area. The United States, Mexico’s main export markets, is expected to invest 150 billion dollars in renewable energy over the next ten years.

In 2008, about 120 billion dollars were invested in renewable energies on a global scale, a 15 percent increase over the previous year. It is estimated that investments will reach 450 billion dollars a year by 2012 and 600 billion dollars by 2020.

Performance and Outlook

Mexico is an ideal location for generating energy from renewable sources:

• Wind Power. Mexico’s potential exceeds 40,000 MW. Today, Mexico is home for at least 28 projects, such as Eurus, Latin America’s largest wind project, with an installed capacity of 250 MW.

• Solar Power. Half of Mexico’s territory has an average daily sun exposure of 5 KWh/m2, which is enough to cover the needs of the average Mexican household. It is estimated that in 2012 Mexico will have an installed capacity of 10 MW produced using thermosolar energy.

• Hydropower. It is estimated that the potential for plants with capacities below 10 MW is approximately 3,250 MW. Mexico has 34 plants within this range with a total capacity of 109 MW.

• Geothermal Power. Mexico’s installed capacity to generate power from geothermal energy is currently close to 1,000 MW, the third largest in the world, after Philippines and the United States.

• Biomass Power Bioenergy represents 8 percent of the country’s primary power consumption. Mexico’s biopower potential is estimated between 83,500 and 119,000 MW a year.

Companies Established in Mexico

Some of the companies established in Mexico are:

• EDF Energies Nouvelles
• Iberdrola
• Kyocera 
• Liebherr
• Sanyo
• Sunpower
• USO
• Vientek  (Mitsubishi and TPI Composites joint venture)

Industrial strengths

A country with experience.

Mexico has become a leading destination for global aerospace, automotive, medical device and electronics firms, which use it as a manufacturing platform for the global market due to strengths such as:

• Transfer of quality methodologies
• Supplier development programs
• Manufacturing standards
• Certification
• Human capital

A country with qualified labor.

• There are over 750,000 engineering and technology students.
• Over 90,000 new engineers and technology students graduate each year from Mexican universities.

A country with low operation costs.

According to the “2009 Manufacturing Costs Index” study carried out by the consulting firm AlixPartners, Mexico is the country with the lowest manufacturing costs for industrial components among the main emerging economies (Brazil, China and India).