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