Commodity Market Report

Mexico power industry overview 2022

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Despite an uncertain investment scenario, from May 2021 and up to August 2022, 3.4 GW of new solar and wind installed capacity were added to the grid, and its share of total supply reached 12% of the entire generation in 2021 compared to 10% in 2020. Nonetheless, delays and rejections of permits from the energy regulator, CRE, have halted the growing trend of new installed capacity from private renewable projects in previous years. 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 sector’s evolution. Moreover, we analyze the development of LMPs and its components, installed capacity, generation by technology and demand.

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