Mexico Energy Insights
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The energy reform in Mexico introduced Power Purchase Agreements (PPAs) as one of the primary ways to trade energy. A PPA is a long-term contract between parties to purchase a certain amount of energy for future delivery. The agreements are typically…
Mexico is located over the Ring of Fire, extracting heat from the earth can be both economic and feasible. Earth’s natural heat reserves are immense. The Electric Power Research Institute (EPRI) has estimated the stored thermal energy below the…
Since 2015, the Mexican wholesale electricity market has been operating as a competitive market. However, there are certain restrictions to guarantee fairness for all stakeholders and to meet the national clean energy goals.
Mexico was the first country to commit to specific targets under the Paris Climate Agreement, and achieving those targets is driving solar energy in the country.
Mexico’s renewable energy auctions benefited from the experiences of other countries, so results have generally been better. According to IRENA, 53% of Mexican solar energy auction projects were on time, while only 37% experienced delays.
The Mexican dilemma is a delicate balance for both long-term buyers of power, and for the government. Natural gas stabilizes electricity prices and it provides reliability to the power grid.
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