Mexico's energy transition slow, PV development less than expected

Mexico is one of the sunniest regions in the world, and as Latin America's second-largest electricity market, the country has a strong manufacturing sector and growing energy demand and should be one of the global leaders in the transition to renewable energy sources.?However, the Mexican PV market is underperforming, and although the country's government is emphasizing PV power generation, it has been slow to develop it. Mexico's economy, which grew by 3.1% in 2022, is expected to cool down somewhat in 2023, with growth projected at 2%. Electricity demand grew by 2.6% last year, but growth in 2023 will slow in line with broader macroeconomic trends.

When the Mexican government released its power development plan for 2022 to 2036, it originally planned to install 9GW of PV systems in 2022, and committed to reach a 35% share of renewable power generation by 2024, which is expected to increase to 14.5GW by 2025, an increase of 65%. However, taking into account the current decline in PV module prices and the development potential of the Mexican PV market, the number of installed PV systems in Mexico did not meet expectations that this goal could be achieved until 2031.

Mexico is a country with great potential for the development of the PV market. The country has abundant sunshine resources, the local government has formulated a series of policies to support the development of clean energy, and the demand for photovoltaic energy is growing. Although Mexico's PV market faces some challenges, such as policy uncertainty, land acquisition, and financing difficulties, these issues are being gradually resolved. With the development of the Mexican economy and the increasing demand for clean energy, the country's PV market is expected to continue its growth trend.

Seraphim is a Tier 1 solar module manufacturer, listed by BNEF. We research, develop, produce, and sell solar PV products since 2011.

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