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Mexico’s Short-Term Outlook Appears Cloudy on Global Wind Day

By Cas Biekmann | Wed, 06/16/2021 - 09:54

Mexico has a fantastic potential to deliver wind-based renewable energy. Nevertheless, much of this potential remains untapped. Due to government policies, new wind projects have become difficult develop. Nevertheless, Mexico’s wind-based possibilities will remain strong until they can be turned into a reality in the future.

June 15, 2021 is considered Global Wind Day in Mexico, nevertheless, the country's  wind energy outlook could have been better.  The latest headlines regarding wind development outlines a rather gloomy scenario, all pointing toward the government’s strategy to pull the previously liberalized energy sector back towards a direction that mainly benefits state-owned utility CFE. Last month.

Data from the Mexican Wind Energy Association (AMDEE) shows that investments in the energy sector will drop by 61 percent in 2021. In 2020, the wind sector expected approximately US$1.3 billion dollars in investments, but in 2021 investment will barely reach US$500 million. If the pipeline of new projects runs dry, it will take several years to develop wind projects if the regulatory environment is to shift again.

Last month, Mexico fell from second place to fourth place in a ranking that calculates Latin America’s wind infrastructure growth, according to the President of the Global Wind Energy Council (GWEC) for Latin America, Ramón Fiestas.

Albert Sunyer, Country Manager Mexico of The Nordex Group, explained to Mexico Business News that the future perspective is not as grim as the short-term outlook suggests. “In the medium term, our hope is that the judges will deliver similar judgements to those we have already seen; for instance, with the decision of the Supreme Court to revert in January 2021 the reliability policy promoted by SENER,” he said, adding that this could change the outlook once again.  “Once this happens, the market will recover and attract investment again. We feel optimistic for the long term. The work towards clean energy development that we do not do today, will have to be done in the future. The fact is that if Mexico’s GDP grows by 3 percent, energy demand will grow around 2 percent. This means that the next 15-20 years, installed capacity is expected to double. Therefore, Mexico will need much more power generation. Renewable energy provides the lowest costs.”

The data used in this article was sourced from:  
AMDEE, Milenio, GWEC
Cas Biekmann Cas Biekmann Journalist and Industry Analyst