US-Mexico power market arbitrage: Sustained opportunity or fleeting mirage?

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In this insight we discuss the prospects of power interconnection between the US and Mexico along with ongoing plans to link Baja California to the Mexican SIN grid, with a focus on fundamentals and emerging transmission constraints. Overall, we expect targeted cross-border ventures to continue, but the scale of the markets being interconnected, the current slate of existing and proposed projects, and inevitable public opposition, massive cross-border power flows appear several years away.

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