The Potential of Battery Storage in Mexico’s Energy Transition

Battery Energy Storage Systems (BESS) have gained momentum in Mexico, with both the federal government and private companies ramping up plans to install several gigawatts of capacity over the coming years. These systems allow for electricity, whether surplus or not, to be stored and released during peak demand or grid disruptions, helping to stabilize the power supply.

BESS offers three major benefits for both users and the grid. First, they enhance grid resilience by storing electricity that can be used during blackouts or when curtailment occurs. Second, they reduce electricity costs, allowing power generated during off-peak hours to be used when prices are higher, like at night. Third, BESS can improve energy access in remote areas through microgrid systems that operate independently from the national grid. Additionally, they are particularly attractive for renewable energy projects with intermittent power, such as solar. With BESS, solar farms are able to store surplus energy during the day that can be distributed during nighttime when production stops.  

As part of Mexico’s broader energy strategy, the federal government is backing significant BESS investments. According to the Strengthening and Expansion Plan for the National Electric System released earlier this year, CFE aims to deploy 2,216MW of battery storage by 2030, an investment estimated at around US$2.3 billion. The same plan outlines six photovoltaic plants set to begin operations between 2027 and 2028, all of which will include BESS to cover roughly 30–35% of their output, amounting to 574MW of storage capacity. According to Jorge Islas, Deputy Minister of Energy Planning and Transition, all new intermittent renewable energy plants will require 30% of their capacity in batteries, with the batteries capable of storing at least three hours of output. Looking further ahead, the government’s Indicative Program for the Installation and Retirement of Power Plants (PIIRCE) includes plans for 8.4GW of BESS installations between 2024 and 2038.

In recent years, BESS has shifted from a niche solution to a critical component of Mexico’s energy strategy. Enrique Garduño, CEO, Skysense, a company specializing in BESS, believes that since 2023, the technology has reached an inflection point, not only becoming more financially attractive and bankable, but also benefiting from regulatory improvements.

“The energy storage sector to me is an emerging sector,” said Garduño. “But over the past three years we have started to see an inflection point where exponential growth is going to happen. The opportunity is massive, considering you have a grid stressed in terms of supply and demand.”

Still, experts caution that batteries alone will not solve Mexico’s energy challenges. Gerardo Pérez, Legal Representative at EDF Renewables, argues that energy storage must be paired with significant investment in transmission, distribution, and new generation.

“Energy storage technologies, such as BESS, play an important role in strengthening the grid, but they are not a standalone solution,” said Perez. “The underlying issue is that Mexico’s electrical infrastructure, particularly the national transmission and distribution networks, requires significant reinforcement. These networks currently represent the main bottleneck.”

As Mexico accelerates its solar buildout, pairing it with battery storage from the outset will be key to maximizing long-term value and reliability. Felipe Gallego Llano, COO and Co-Founder, MegaFlux, points to the experiences of Texas as a cautionary tale, where grid instability and inadequate storage limited the benefits of renewable energy. He references the 2021 Texas power crisis, where extreme weather and dependence on natural gas exposed the need for greater resilience, something well-planned BESS can provide. Llano emphasizes that Mexico, with the right regulatory and logistical planning, is in a strong position to stay ahead of these risks.

“Battery storage is not just a technical necessity, it is a strategic opportunity to build a more independent, efficient, and sustainable energy future that supports economic growth while meeting climate commitments,” said Llano. 

The rollout of BESS has gained strong momentum globally. According to the IEA, installed BESS capacity reached 272GW in 2023. That number could rise to 1,016GW by 2030 if current energy transition policies hold, and up to 1,503GW if the world stays on track for the net-zero-by-2050 scenario. 

Benchmark Mineral Intelligence data shows China currently leads with 215.5GWh of installed capacity, followed by the United States with 82.1GWh, while most other countries remain in the single digits. But the landscape is set to change quickly. By 2027, the Top 20 countries are projected to grow their combined capacity by 289%. China and the United States are expected to hit 721.2GWh and 244.6GWh, respectively, followed by Australia (102.9GWh), the United Kingdom (56.3GWh), and Chile (41GWh). Canada is set to experience the fastest growth, surging from just 0.3GWh to 18.3GWh, a staggering 6,000% increase.