On this week’s episode of #TruthtoPower, IntelStor's Founder & CEO, Philip Totaro examine the state of #renewableenergy project development in Mexico and the companies looking to exit and enter the market.

The election of Mexican President Claudia Sheinbaum was supposed to usher in a new era of renewable energy project development in Mexico. The reality has been anything but rosy.

Lack of adequate transmission, long interconnection queues, uncertainty over power offtake by the CFE, as well as legal issues around dispute resolution have led to a chaotic implementation of reforms.

PPA contracts arising from auctions could cover up to 95% of the energy increasing electricity demand. Prices are around $30 / MWhr, but in isolated regions like the peninsula they exceed $100.

By 2030, the country needs to build at least 15,000 kilometers of new trans- mission lines, and while the Electricity Sector Act codifies certain regulations, additional laws are required to define ancillary services or energy storage that would be required to provide the required grid stability.

Ultimately, the Mexican #windenergy sector could help to secure a private investment of more than $6.5 billion in the coming years to support Mexico’s commitments to the Paris Agreement.

Have a listen today, and get in touch with your best questions about the renewable energy market in Mexico, or any other country around the world.

This show examines data driven insights for the energy sector, with a focus on renewables. To subscribe to IntelStor Research Notes and get early access to our latest content as well as these Truth to Power weekly editorials, visit https://lnkd.in/grfixJn