Surge in Self-Consumption Drives Mexico's Energy Transformation

Mexico’s self-consumption sector is experiencing significant growth, driven by energy policies and increased ESG interest. Part of Sheinbaum’s energy plan proposes raising the limit for "exempt electricity generation" from 0.5 to 0.7MW. This adjustment directly benefits DG, which is generated by exempt generators, meaning those not requiring generation permits from the Energy Regulatory Commission (CRE), provided they operate within the set megawatt limits. 

According to Energía Real, distributed generation (DG) photovoltaic capacity surged by 31.69% in the first half of 2024, reaching 3,891.22MW. This substantial increase reflects the sector's rapid expansion, largely attributed to the Mexican government’s support and the public’s growing commitment to sustainable practices.

Santiago Villagómez, Director General, Energía Real, stated that the increase to 0.7MW will expand installation and operational opportunities for these systems. "This will promote self-consumption and the contribution of surpluses to the grid, strengthening energy diversification and the transition to cleaner sources," he told Energías Renovables.

CRE reported nearly half a million DG contracts (460,896) in the first half of 2024, a 25.5% increase from 367,207 contracts in the same period of 2023. Solar photovoltaic energy, representing 99% of DG, has been the primary source of distributed electric generation, with installed capacity growing from 2,954.65MW to 3,891.22MW in the first half of 2024.

Mexican industries increasingly view photovoltaic energy generation as a strategic investment. It provides cost savings and meets the rising demand for sustainability and competitiveness. Industrial photovoltaic DG involves installing solar panels in factories, production plants, and other industrial facilities, enabling them to produce their own clean energy, reducing reliance on the conventional grid while promoting operational and economic sustainability.

Hybridization with Battery Energy Storage Systems (BESS) represents a crucial evolution in industrial DG. Combining solar panels with storage systems allows companies to generate and store energy for use during low generation or high demand periods. Benefits include greater energy independence, reduced operational costs by avoiding peak tariffs, and stable supply continuity even during grid interruptions.

Mexico's installed DG capacity exceeds 3,300MW. This growth is fueled by more affordable access to solar panels, financing options, and regulatory advantages for smaller installations. Jalisco, Nuevo Leon, and Chihuahua lead in DG capacity, concentrating about 33% of the national total. Long-term projections are optimistic, with expected investments of US$22 billion in photovoltaic projects by 2028, covering both DG and large-scale plants, according to AMIF and Asolmex data. These investments aim to meet the industrial sector's energy demands and drive Mexico’s transition to a cleaner, more efficient future.