Mexico power and renewables strategic planning outlook 2025

In 2025, Mexico’s energy markets are undergoing significant changes. The post-Covid-19 recovery boom, which was initially fueled by nearshoring momentum and the reopening of the economy, has now lost momentum. Economic challenges and climate-related issues continue to strain Mexico’s power system. Current GDP forecasts indicate a 5% lower load growth compared to our previous long-term projections, which aligns with reduced GDP expectations. The new government administration has introduced an ambitious centralized energy plan amid this stagnant market. Meanwhile, the penetration of distributed generation is increasing as consumers look for alternatives to the newly established regulatory framework. Additionally, utility-scale energy storage is expected to begin operations around 2026.set to begin utility-scale operation around 2026.