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Analyzing the Hydropower Industry in Mexico

Mexico hydropower market: Huge potential for industryin coming years

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2014-04-23 11:37:01 - Analyzing the Hydropower Industry in Mexico - a new market research report on

Hydropower market in Mexico has a huge potential. Around 15,000 MW of hydropower potential remains unexplored in Mexico. For mini-hydropower projects, there already been 100 potential sites identified. With the government´s focus on utilizing World Bank financing to set-up small-scale renewable projects, many mini-hydro projects have been constructed. Hydropower accounted for around 15% of the total power generation mix and around 80% of the total renewable electricity generation mix in the country in 2012.

Looking at Mexico´s market, the renewable energy sector has been growing fast and in the last ten years foreign direct investments have reached the incredible amount of USD 7 billion, demonstrating the great appeal of the Mexican energy industry. However, supporters of the renewable energy industry



complain about the lack of an efficient funding system that could mark a decisive turning point in clean energy production. In Mexico the main challenges to a net green development derive directly from a scarce range of financing tools: difficult access to the market, cheaper energy from oil and gas, lack of incentives and funding mechanism, and current high start-up costs make renewable resources the less competitive choice.

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