WEMO24-Compiled Report-Interactive compressed (002) 4154-7882-8116 v.1 - Flipbook - Page 191
MARKET
DATA
Mexico’s nearshoring appeal attracted inward foreign direct investment (FDI) flows of around $36 billion in 2023, their highest level in 18 years, compared to around $14 billion in 2006
Mexico’s National Electric System (Sistema Eléctrico Nacional or SEN) is
comprised of 9 regions, plus a binational electricity system in Baja
California. Most of the nine regions are interconnected, forming the
National Interconnected System (SIN). The Baja California system operates
in the Western Interconnection of the United States, overseen by the
Western Electricity Coordinating Council (WECC).
The Secretariat of Energy (SENER) is the government department in
charge of production and regulation of energy in Mexico. SENER estimates
there to be 64,595 MW of newly installed capacity by 2038 including
PV-DG, green hydrogen, and storage systems
2023 Electricity mix
CO₂ emissions (million metric tons of CO₂ equivalents)
7%
580.0
560.0
Hydro
Renewables
538.1
540.0
520.0
Natural Gas
14%
559.7
10%
57%
Oil
Coal
514.0
12%
Source: Statistical Review of World Energy 2024,
Reuters
500.0
2021
New Generation Capacity- Wind (In GW)
20
15.8
2022
2023
Source: Statistical Review of World Energy 2024
New Generation capacity- Solar (in GW)
15
7%
30.0
7.3
5
5%
2023 Electricity consumption by sector
23.0
Industry
20.0
24%
10.9
0
2023
2030
Sources: IRENA, Internal Forecast
Power Purchase Agreements (PPAs) are one of the main ways to trade
energy in Mexico. Several Private energy utilities such as Iberdrola, Enel,
ENGIE, and Mitsui o昀昀ers attractive PPAs in Mexico for large consumers.
The other mechanism to trade energy is the wholesale market. The
Mexican Wholesale Electricity Market (MEM) is a short-term market
where prices are determined one day in advance or in real time. Electricity
producers send bids to the National Center for Energy Control (CENACE)
that indicate the amount of energy they are o昀昀ering at a speci昀椀c price.
Currently, CFE and some private companies are participating in the
markets.
Sources:
https://www.energyinst.org/_ _data/assets/pdf_file/0006/1542714/EI_Stats_Review_2024.pdf
https://www.reuters.com/markets/commodities/mexicos-energy-transition-hits-reverse-2023-2024-02-13/#:~:text=LITTLETON%2C%20Colorado%2C%20Feb%20
13%20(,flat%20output%20from%20wind%20facilities.
https://www.enerdata.net/estore/energy-market/mexico/#:~:text=Total%20energy%20consumption%20per%20capita,to%20the%20COVID%2D19%20pandemic.
https://www.trade.gov/country-commercial-guides/mexico-power-sector-electricity-infrastructure-and-smart-grid
https://www.energy.gov/oe/learn-more-about-interconnections#:~:text=WESTERN%20INTERCONNECTION-,North%20America%20is%20comprised%20of%20
two%20major%20and%20three%20minor,Rockies%20to%20the%20Great%20Plains
https://mexicoenergyllc.com.mx/blogs/mexico-energy-insights/mexico-s-electricity-market
https://mexicoenergyllc.com.mx/blogs/mexico-energy-insights/frequently-asked-questions-about-power-purchase-agreements-in-mexico
Households
64%
10.0
Services
Others
0
2023
Sources: Enerdata
2030
Sources: IRENA, Internal Forecast
Role of government and regulators
Energy Ministry (SENER)
Preparation, enforcement and
supervision of the electricity
energy policy
Energy Regulatory Commission
(CRE)
Government regulator for
Mexico's oil, natural gas,
biofuels, and electricity sectors
CENACE (Centro Nacional de
Control de Energía), a
subdivision of a State-owned
electric utility company, CFE
(Comisión Federal de
Electricidad)
Manages the wholesale
electricity market and power
grid. It regulates the purchase
and sale market of electric
energy
Public Utilities
•
•
Private Utilities
State-owned electric utility company, CFE
(Comisión Federal de Electricidad),
holds 54% share of the electricity
market.
In 2023, CFE produced 73% of the
electricity consumed in Mexico, covering
99.4% of the population's needs.
•
The local Independent Power Producers
(IPPs) accounted for 30.5%
•
•
•
•
•
Iberdrola
Naturgy
Sempra Energy
Fermaca
TC Energy
Sources: Economic Times, Mexico Business
WEMO 2024
10
191
Mexico
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