Please Wait.....
Report
Mexico Renewable Energy - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)
Market Report I 2026-01-16 I 110 Pages I Mordor Intelligence
Mexico Renewable Energy Market Analysis
The Mexico Renewable Energy Market is expected to grow from 36.57 gigawatt in 2025 to 40.27 gigawatt in 2026 and is forecast to reach 65.2 gigawatt by 2031 at 10.12% CAGR over 2026-2031.
Strong federal targets, cost-competitive solar photovoltaics, and fresh development-bank credit lines anchor this expansion while the new Electricity Sector Law preserves state control through the Federal Electricity Commission (CFE). Developers focus on high-irradiance northern states, repowering wind farms along the Gulf coast, and pairing batteries with new plants to clear interconnection queues. Corporate power-purchase agreements (PPAs) are increasingly bypassing utility procurement, funneling demand toward distributed generation systems with capacities below 10 MW. Meanwhile, peso volatility and local-content rules raise financing hurdles, prompting a decisive shift toward peso-denominated lending from NAFIN and Bancomext.
Mexico Renewable Energy Market Trends and Insights
Solar PV LCOE Continues to Undercut Combined-Cycle Gas
The average utility-scale solar levelized cost of electricity reached USD 51/MWh in 2024, decisively lower than the gas-fired alternative, which must account for fuel volatility pricing. Mexico's high solar irradiation, often exceeding 2,000 kWh/m, drives capacity factors that outclass those of its global peers and reshape merit-order dispatch. Gas units now shift toward peaking roles, stranding investments and freeing roughly USD 1.6 billion in annual US gas import costs. Solar's zero marginal cost sharpens midday price troughs, prompting grid operators to heighten voltage and frequency controls. Developers counter curtailment risk by colocating battery storage, extracting peak-shaving and capacity-market revenues that lift project returns.
PPAs Backed by Corporate Sustainability Targets Drive C&I Demand
Multinational manufacturers, including General Motors, lock in fixed-price renewable PPAs to meet global decarbonization mandates, driving a 14.60% CAGR for commercial and industrial installations. Self-supply permits allow firms to skirt traditional utility tendering and transact bilaterally over private lines, while clean-energy certificates confirm compliance. Grupo Bachoco's 26 MW distributed solar program, spanning 19 states, highlights how aggregated commercial and industrial (C&I) loads can achieve utility-scale economics. PPA tenors of 15-20 years reduce exposure to peso swings when paired with dollar-indexed clauses, anchoring long-term viability.
Intermittency Congestion on the Sistema Interconectado Nacional
Variable generation has outpaced transmission build-out, slicing 1.9 percentage points off the Mexico renewable energy market CAGR. Only 2,600 km of new lines came online in five years, while 4,038 km remain under construction, forcing curtailments at peak production. Grid operator CENACE relies on thermal units to balance frequency, which escalates ancillary-service costs and erodes solar's price advantage. Planned 500 kV corridors aim to relieve congestion by 2027; however, permitting delays threaten to compromise timelines. Developers hedge exposure via hybrid storage or location-based hedging instruments to stabilize revenues.
Other drivers and restraints analyzed in the detailed report include:
Wind Repowering Potential of Ageing Northern-Coast FarmsGrid-Connected Battery Hybrids Approved Under CEL ReformPolicy Uncertainty Post-2028 National Electricity Plan Review
For complete list of drivers and restraints, kindly check the Table Of Contents.
Segment Analysis
Hydropower retained 37.33% of Mexico's renewable energy market share in 2025, primarily driven by legacy dams such as Chicoasen and La Angostura, which supply firm power throughout the year. The segment benefits from existing reservoirs, mature operations and maintenance (O&M) routines, and limited environmental opposition compared to new large dams. Pumped-storage retrofits in northern states are under review, which could add peak-shaving flexibility without new impoundments. Solar is advancing at a 14.02% CAGR to 2031, the fastest clip within the Mexico renewable energy market, aided by continued module-cost deflation and a wave of corporate PPAs for distributed rooftops. CFE's plan to build nine utility-scale solar plants totaling 4.673 GW underscores the state utility's pivot toward photovoltaic capacity in inexpensive desert land across Sonora, Chihuahua, and Durango.
Repowering keeps wind competitive; 2.5 GW in the Isthmus of Tehuantepec will replace aging 2 MW turbines with 5 MW-plus machines, boosting production without requiring new land leases. Geothermal remains steady at approximately 950 MW from Los Azufres and Los Humeros, providing a valuable baseload for the Mexican renewable energy industry, despite capital-constrained expansion drilling. Bioenergy projects fueled by bagasse and municipal waste operate near sugar mills in Veracruz and Jalisco, selling surplus electricity into the grid while supplying process heat onsite. Ocean energy is still nascent; regulatory standards for marine technologies are pending, which keeps private investment sidelined.
The Mexico Renewable Energy Market Report is Segmented by Technology (Solar Energy, Wind Energy, Hydropower, Bioenergy, Geothermal, and Ocean Energy) and End-User (Utilities, Commercial and Industrial, and Residential). The Market Sizes and Forecasts are Provided in Terms of Installed Capacity (GW).
List of Companies Covered in this Report:
Comision Federal de Electricidad (CFE) Iberdrola SA Acciona Energia Enel Green Power Zuma Energia Canadian Solar Inc. JinkoSolar Holding Co. Ltd. Trina Solar Co. Ltd. JA Solar Technology Co. Ltd. LONGi Green Energy Technology Co. Ltd. Siemens Gamesa Renewable Energy SA Vestas Wind Systems A/S Nordex SE Invenergy LLC Engie Mexico EDF Renouvelables Mexico TotalEnergies Renouvelables Grupo Cox Energy Enlight Mexico Vive Energia
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 Introduction
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2 Research Methodology
3 Executive Summary
4 Market Landscape
4.1 Market Overview
4.2 Market Drivers
4.2.1 Solar PV LCOE continues to undercut combined-cycle gas
4.2.2 PPAs backed by corporate sustainability targets (C&I demand)
4.2.3 Wind repowering potential of ageing northern-coast farms
4.2.4 Grid-connected battery hybrids approved under CEL reform
4.2.5 Climate-linked development-bank credit lines (NAFIN, Bancomext)
4.3 Market Restraints
4.3.1 Intermittency congestion on the "Sistema Interconectado Nacional"
4.3.2 Policy uncertainty post-2028 National Electricity Plan review
4.3.3 Rising WACC from peso depreciation risk
4.3.4 OEM supply-chain exposure to U-S-M-C-A local-content rules
4.4 Supply-Chain Analysis
4.5 Regulatory Landscape
4.6 Technological Outlook
4.7 Porter's Five Forces
4.7.1 Threat of New Entrants
4.7.2 Bargaining Power of Suppliers
4.7.3 Bargaining Power of Buyers
4.7.4 Threat of Substitutes
4.7.5 Competitive Rivalry
4.8 PESTLE Analysis
5 Market Size & Growth Forecasts
5.1 By Technology
5.1.1 Solar Energy (PV and CSP)
5.1.2 Wind Energy (Onshore and Offshore)
5.1.3 Hydropower (Small, Large, PSH)
5.1.4 Bioenergy
5.1.5 Geothermal
5.1.6 Ocean Energy (Tidal and Wave)
5.2 By End-User
5.2.1 Utilities
5.2.2 Commercial and Industrial
5.2.3 Residential
6 Competitive Landscape
6.1 Market Concentration
6.2 Strategic Moves (M&A, Partnerships, PPAs)
6.3 Market Share Analysis (Market Rank/Share for key companies)
6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Products & Services, and Recent Developments)
6.4.1 Comision Federal de Electricidad (CFE)
6.4.2 Iberdrola SA
6.4.3 Acciona Energia
6.4.4 Enel Green Power
6.4.5 Zuma Energia
6.4.6 Canadian Solar Inc.
6.4.7 JinkoSolar Holding Co. Ltd.
6.4.8 Trina Solar Co. Ltd.
6.4.9 JA Solar Technology Co. Ltd.
6.4.10 LONGi Green Energy Technology Co. Ltd.
6.4.11 Siemens Gamesa Renewable Energy SA
6.4.12 Vestas Wind Systems A/S
6.4.13 Nordex SE
6.4.14 Invenergy LLC
6.4.15 Engie Mexico
6.4.16 EDF Renouvelables Mexico
6.4.17 TotalEnergies Renouvelables
6.4.18 Grupo Cox Energy
6.4.19 Enlight Mexico
6.4.20 Vive Energia
7 Market Opportunities & Future Outlook
7.1 White-space & Unmet-Need Assessment
- Not Sure / Need Reassuring
- Confirm Content
-
Content is provided by our partners and every effort is made to make Market Report details as clear as possible. If you are not sure the exact content you require is included in this study you can Contact us to double check. To do this you can:
Use the ‘? ASK A QUESTION’ below the license / prices and to the right of this box. This will come directly to our team who will work on dealing with your request as soon as possible.
Write to directly on support@scotts-international.com with details. Please include as much information as possible including the name of report or link so our staff will be able to work on you request.
Telephone us directly on 0048 603 394 346 and an experienced member of team will be on hand to answer.
-
- Sample Pages
-
With the vast majority of our partners we can obtain Sample Pages to support your decision. This is something we can arrange without revealing your personal details.
It is important to note that we will not be able to provide you the exact data or statistics such as Market Size and Forecasts. Sample pages usually confirm the layout or the Categories included in Charts and Graphs, excluding specific data.
To ask for Sample Pages by contact us through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Check for Alternatives
-
Whilst we try to make our online platform as easy to use as possible there is always the possibility that a better alternative has not been found in your search.
To avoid this possibility Contact us through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346 and a Senior Team Member can review your requirements and send a list of possibilities with opinions and recommendations.
-
- Confirm Content
- Prices / Formats / Delivery
- Prices
-
All prices are set by our partners and should be exactly the same as those listed on their own websites. We work on a Revenue share basis ensuring that you never pay more than what is offered elsewhere.
Should you find the price cheaper on another platform we recommend you to Contact us as we should be able to match this price. You can Contact us though through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Discounts
-
As we work in close partnership with our Partners from time to time we can secure discounts and assist with negotiations, this is part of our personalised service to you.
Discounts can sometimes be arranged for speedily placed orders; multiple report purchases or Higher License purchases.
To check if a Discount is possible please Contact our experienced team through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Available Currencies
-
Most Market Reports on our platform are listed in USD or EURO based on the wishes of our Partners. To avoid currency fluctuations and potential price differentiations we do not offer the possibility to change the currency online.
Should you wish to pay in a different currency to that advertised online we do accept payments in USD, EURO, GBP and PLN. The price will be calculated based on the relevant exchange rate taken from our National Bank.
To pay in a different above currency to that advertised online please Contact our team and a quotation will be sent within a couple of hours with payment details.
-
- Licenses
-
License options vary from Partner to Partner as is usually based on the number of Users that will benefitting from the report. It is very important that License ordered is not breached as this could have potential negative consequences for you individually or your employer.
If you have questions or need confirmation about the specific license we recommend you to Contact us and a detailed explanation will be provided.
-
- Global Site License
-
The Global Site License is the most comprehensive license available. By selecting this license, the Market Report can be shared with other ‘Allowed Users’ and any other member of staff from the same organisation regardless of geographic location.
It is important to note that this may exclude Parent Companies or Subsidiaries.
If you have questions or need confirmation about the specific license we recommend you to Contact us and a detailed explanation will be provided.
-
- Formats
-
The most common format is PDF, however in certain circumstances data may be present in Excel format or Online, especially in the case of Database or Directories. In addition, for certain higher license options a CD may also be provided.
If you have questions or need clarification about the specific formats we recommend you to Contact us and a detailed explanation will be provided.
-
- Delivery
-
Delivery is fulfilled by our partners directly. Once an order has been placed we inform the partner by sharing the delivery email details given in the order process.
Delivery is usually made within 24 hours of an order being placed, however it may take longer should your order be placed prior to the weekend or if otherwise specified on the Market Report details page. Additionally, if details have been not fully completed in the Order process a delay in delivery is possible.
If a delay in delivery is expected you will be informed about it immediately.
-
- Shipping Charges
-
As most Market Reports are delivered in PDF format we almost never have to add additional Shipping Charges. If, however you are ordering a Higher License service or a specific delivery format (e.g. CD version) charges may apply.
If you are concerned about additional Shipping Charges we recommend you to Contact us to double check.
-
- Prices
- Ordering
- By Credit Card
-
We work in Partnership with PayU to ensure payments are made securely in a fast and effortless way. PayU is the e-payments division of Naspers.
Naspers operates in over 133 International Markets and ranks 3rd Globally in terms of the number of e-commerce customers served.
For more information on PayU please visit: https://www.payu.pl/en/about-us
-
- By Money Transfer
-
If you require an invoice prior to payment, this is possible. To ensure a speedy delivery of the Market Report we require all relevant company details and you agree to maximum payment terms of 30 days from receipt of order.
With our regular clients deliver of the Market Report can be made prior to receiving payment, however in some circumstances we may ask for payment to be received before arranging for the Market Report to be delivered.
-
- By Credit Card
- Security
- Website security
-
We have specifically partnered with leading International companies to protect your privacy by using different technologies and processes to ensure security.
Everything submitted to Scotts International is encrypted via SSL (Secure Socket Layer) and all personal information provided to Scotts International is stored on computer systems with limited access in controlled environments.
-
- Credit Card Security
-
We partner with PayU (https://www.payu.pl/en/about-us) to ensure all credit card payments are made securely in a fast and effortless way.
PayU offers 250+ various payment channels and eWallet services across 4 continents allowing buyers to pay electronically, whether on a computer or a mobile device.
-
- Website security