Commodity Market Report

Mexico power industry overview 2021

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18 May 2021

Mexico power industry overview 2021

Report summary

The health crisis and growing regulatory uncertainty decelerated renewables advances in 2020. Although 2.7 GW of solar and 1.5 GW of wind new installed capacity were connected into the grid in 2019, 2020 renewables additions slowed and closed at 1 GW, setting the pipeline between 2021 and 2023 at 5.7 GW. Nonetheless, the delay in permits and the regulatory plans of the current administration may further delay its completion. This report provides an overview of the current state of the market, recalling the main points of the Energy Reform and its resulting market structure while highlighting the primary intended and ongoing regulatory modifications that may shift the current evolution of the sector. Moreover, we analyze the development of LMP and its components, installed capacity, generation by technology, and demand, going more in-depth with details for each region to provide a complete picture of market fundamental variables.

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