Global Disparities in Renewables Persist; Mexico Shows Progress

While renewable energy capacity surged globally in 2024, persistent regional disparities remain, according to the Renewable Energy Statistics 2025 report by the International Renewable Energy Agency (IRENA). The agency warns that while momentum is strong, much faster growth is needed to meet international climate goals. Within this global picture, Mexico stands out in Latin America for its steady expansion, though the country continues to face challenges in diversifying its energy mix and reducing its dependence on fossil fuels.

Mexico expanded its installed renewable energy capacity from 17.4GW in 2015 to 34GW in 2024. This figure represents just under 6% of North America’s total renewable capacity, which reached 571.4GW last year. In Latin America, Mexico ranks second in total renewable capacity, behind Brazil’s 213.9GW. However, Brazil and Chile far surpass Mexico in the proportion of renewables within their domestic energy mixes, with 86.9% and 63.2% of their electricity coming from clean sources, respectively, compared to just 28.3% in Mexico.

At the global level, China remains the undisputed leader, with 1,817GW of installed renewable capacity, a 280% increase from its 479GW in 2015. The United States follows with 427GW, more than doubling its 2015 figure of 195GW, reflecting strong momentum in North America overall.

Despite Mexico’s significant installed capacity, its power generation remains dominated by fossil fuels. Natural gas alone accounted for 57% of electricity generation in 2024. Renewable electricity production, meanwhile, increased from 47,506GWh in 2015 to 70,698GWh last year, representing just 18.5% of total generation. In the context of North America, this output made up less than 5% of the region’s total renewable electricity. Globally, China and the United States were also the top producers of renewable electricity in 2024, with 2,842,826GWh and 962,076GWh, respectively.

A closer look at Mexico’s renewable mix shows important variation by source. Hydropower remains the country’s largest renewable technology by installed capacity, with 12.8GW in 2024. However, despite capacity remaining stable between 12 and 13GW over the past decade, hydropower production has declined significantly. After reaching over 35,000GWh in both 2021 and 2022, generation dropped by 42% to 20,796GWh in 2023. Regionally, Mexico’s hydro capacity is only surpassed by Colombia (13.2GW) and Brazil (110GW).

Wind energy in Mexico has grown steadily, with capacity increasing from 3.3GW in 2015 to 7.3GW in 2024, an expansion of 123%. Wind electricity production also grew from 8,745GWh to 20,907GWh over that period, a 139% rise. However, wind generation peaked in 2021 at 21,286GWh, which coincided with the year of highest installed capacity at 7.6GW, before experiencing a slight dip.

Solar energy tells a more dynamic story. Installed solar capacity soared from just 295MW in 2015 to nearly 12GW in 2024, an increase of almost 4,000%. Solar electricity generation jumped even more dramatically, growing by over 8,500% from 274GWh to 23,575GWh. Unlike wind and hydro, solar capacity and generation have risen consistently year after year, underscoring the technology’s accelerating momentum in the country.

Mexico’s bioenergy sector has remained relatively flat, with capacity hovering around 800MW since 2016. Yet generation has recently fallen, reaching its lowest level in nearly a decade with just 1,099GWh produced in 2023, less than half the 2018 peak of 2,272GWh. Geothermal energy has also seen a decline. Although capacity has remained around 1GW, production dropped from its 2017 high of 6,662GWh to just 4,321GWh in 2023, marking a downward trend since 2021.

Still, experts emphasize that Mexico holds strong structural advantages that could be better leveraged through improved governance. “We live in a country with many options for wind and solar energy; practically anywhere you place them, they can be efficient,” said Fernando Cruz, Energy Director, Kannbal Consulting. “But establishing a solid legal framework and operational rules so renewable energy producers can participate more actively in the energy mix is another major opportunity.”

Cruz warns that systemic and policy misalignments have slowed the country’s energy transition, despite evident potential. “The paradox is evident,” he said. “Mexico is expanding its refining capacity with projects such as Dos Bocas, but it is not securing the main input: crude oil. Despite the advancement of renewable energy, projects are being hindered by regulatory obstacles, network saturation, and a lack of systemic integration.” He added that bottlenecks in transmission, storage, and integration continue to challenge structural energy independence.

For Karla Cedano, Head of the Innovation and Futures Lab, renewables offer Mexico a chance not just to decarbonize, but to decentralize. “The nature of renewable energies and their ability to promote decentralized generation schemes make it possible to multiply these transitions,” she said. “Transforming energy ecosystems becomes a local possibility, with a high granularity.” Granularity, she believes, is key to making energy transitions real for communities across the country. “Here lies the possibility that Mexico, and the rest of Latin America, will move toward that great energy transformation, where the effects of many energy transitions are felt at the community, municipal, and state level.” Cedano also underscored that Mexico has both the technological and economic capacity to push forward. “We have R&D capabilities to promote a more efficient, sustainable, and high-national energy industry,” she added.

Globally, the IRENA report shows that a record 582GW of new renewable capacity was added in 2024, an annual increase of more than 15%. However, growth was unevenly distributed. Asia dominated with 71% of global additions, while Africa, Eurasia, Central America, and the Caribbean collectively accounted for just 2.8%. Solar and wind technologies were the primary drivers, making up 97.5% of new capacity. Solar alone added 453GW, reflecting its growing cost competitiveness and value for energy security. Wind followed with 114GW.

For the first time, renewables nearly matched fossil fuels in terms of global installed capacity, 46.2% compared to 47.3%. However, current growth rates remain insufficient to reach the global goal of tripling renewable capacity to 11.2TW by 2030. At today’s pace, the world is projected to reach only 10.3TW. IRENA notes that hitting the target will require annual growth to accelerate to 16.6% over the next five years.

In terms of power generation, renewables supplied nearly 30% of global electricity in 2023, thanks to a 5.6% increase in green electricity output. In contrast, non-renewable generation grew by just 1.2%, highlighting the growing role of clean energy in meeting rising demand while curbing emissions.

IRENA Director General Francesco La Camera pointed out that while renewable growth is driving global energy transformation, the benefits are not evenly distributed. “Countries and regions that attract substantial investment in renewables are seeing enhanced energy security, increased industrial activity, and new jobs, fueling broader socioeconomic development,” he said. But others, particularly in the Global South, are being left behind.