ProMéxico MIM


The Renewable Energy Industry in Mexico

At the end of 2016, the installed capacity of renewable energies in Mexico grew 10.2%, with respect to the previous year. 15.4% of the total electric energy in the country was generated by renewable energies, most of this share was generated by the hydropower and wind technologies.

Mexico has an enormous potential to take advantage of renewable resources, according to the national inventory of renewable energies, it recognizes a proven and probable power generation of 125,984 GWH per year. In addition, the potential additional potential (not counting solar) is greater than 195,278 GWH per year; while the estimated solar potential is considered practically unlimited with respect to the national energy consumption.

Potential Power Generation with renewable energy
(GWh year)

Resources Wind Solar Hydropower Geothermal Biomass Wave
Proven 20,104 25,052 4,920 2,610 3,326 0
Probable 0 0 23,028 45,207 680 1,057
Possible 87,600 6,500,000 44,180 52,013 11,485 0

Source: Prospectiva de Energías Renovables 2017-2031, SENER.

Currently 226 power stations in Mexico are operating to generate electricity from renewable sources.

Proyections to 2031

It is estimated that by 2031 the installed capacity to generate electricity from renewable sources will increase to reach 43,718 MW and that wind and hydraulic sources will have the largest share, with 39.4% and 32.6, respectively.

Projection of capacity installed by type of energy source 2021-2031

2021 2026 2031
Wind 8,500 12,627 17,233
Hydropower 12,660 13,689 14,270
Solar 6,170 7,239 7,830
Bioenergy 1,256 2,239 2,239
Geothermal 925 1,359 2,146

Source: Prospectiva de Energías Renovables 2017-2031, SENER.

Attraction of Foreign Direct Investment

Between 2010 and 2016, it was announced about 72 foreign direct investment projects in the Renewable Energy industry in Mexico. The main investor countries were Spain, United States and Germany.

Foreign Direct Investment proyects in Mexico 2010-2016

Origin Country Num. Proyects
Spain 28
United States 10
Italy 8
United Kingdom 5
Germany 5
China 4
France 3
Others 9
Total 72

Source: ProMexico with FDI Markets data, 2017.

Companies in Mexico

More and more transnationals from the renewable energies industry are opting to invest in Mexico due to its appeal and reliability. Both project developers and equipment suppliers are present in the country. In addition, several domestic companies have penetrated the local market with small-scale projects involved in development, manufacturing and selling renewable equipment and/or have decided to diversify their business towards the sustainable energy industry.

There are several production centers in Mexico; some examples by source type and activity are:

Wind industry

  • Generator manufacturing. Potencia Industrial, a 100% Mexican company located in Mexico City, produces and exports to the United States Clipper turbine generators.

    The US company Dynamik Kontroll also manufactures generators in Guadalajara, Jalisco.

  • Tower manufacturing. Trinity, Tubac, CS Wind, Speco and Enertech Fabricaciones produce steel towers for the Mexican wind market.

    Acciona has a facility to manufacture towers at General Bravo, Nuevo León. This is the first plant to produce concrete towers in Mexico, developed by Acciona Windpower.

    The Mexican Company Potensa Wind Structures designs and builds wind towers made of concrete; its manufacturing plant is at Santiago Tianguistenco, Estado de México.

  • Blade manufacturing. The Company from the United States TPI Composites has a manufacturing plant at Ciudad Juárez, Chihuahua, dedicated to produce advanced wind blades.

  • Other wind energy components. Kaydon and Liebherr and Frisa manufacture bearings for wind energy.

Solar Industry

  • Photovoltaic solar module production facilities. The companies Baja Sun (Taiwan-Mexico), Risen Energy (China), SunPower (United States) as well as the Mexican companies Solartec, Iusasol and ERDM have manufacturing plants to supply the local and international markets.

Strengths of the Industry in Mexico

In addition to its excellent geographic location and abundant natural resources, Mexico has huge potential for equipment manufacturing due to its low industrial costs and highly skilled workforce.

  • Experience. Mexico's success in the development of the automotive and electric-electronic industries, for example, provides a methodology platform specialized in infrastructure, which encourages the development of the renewable energies industry in Mexico and leverages supply chains, common support programs and synergistic advantages.
    Mexico is the only country in Latin America with integral knowledge of geothermal energy, from exploration to production. The French company Alstom established the Geothermic and Renewable Energy Cluster in Michoacán, together with the main players of the public sector, businesses and universities. Some of the project's goals are to contribute to improving the environment and to develop the area economically, socially and technologically.

  • Talent. According to the National Association of Universities and Higher Education Institutions information, annually 125 thousand students of engineering, manufacturing and construction graduated from Mexican institutions.

  • Costs. Mexico offers 9.4% savings in manufacturing costs of advanced batteries in the green energy industry, compared to the United States.