Wind Power Idle Amid Mexico's Regulatory Uncertainty

Mexico is grappling with 400MW of wasted wind energy capacity as three fully constructed wind farms remain inoperative, stalled by persistent regulatory uncertainty. These projects, representing over 5% of the country's current installed wind capacity, are awaiting clear definitions within Mexico's new legal framework for the electricity sector.

According to the Mexican Wind Energy Association (AMDEE), these three facilities are among several completed projects facing delays, particularly in securing interconnection with the national electricity system. Gerardo Pérez, President, AMDEE, acknowledged some increased activity with the new administration but noted that the process of integrating these projects into the grid remains slow.

The issue highlights a significant bottleneck for renewable energy growth in Mexico: the pressing need for substantial reinforcement of the national transmission and distribution networks. Energy developers, such as EDF Renewables, have observed a growing sophistication among clients who now understand the complexities of infrastructure development and regulatory aspects beyond simple energy commodity procurement.

The industry is hopeful that the government led by Claudia Sheinbaum will cultivate a favorable environment for renewable energy investment. AMDEE estimates that ensuring legal certainty and technical conditions could mobilize up to US$30 billion in new renewable projects. The new government has set an ambitious goal of generating 45% of the country's energy from clean sources by 2030, a significant increase from current levels. The full operation of these 400MW of stalled projects would immediately contribute to this target.

Companies with international expertise in grid management, like EDF Renewables, have offered their knowledge to Mexican authorities, including CENACE and CFE, to address these infrastructure challenges. There is also renewed interest in historical models where private entities financed and built grid infrastructure before transferring it to CFE.