Mexico's renewable expansion faces grid constraints, Amperon says
XLU•Mexico's CFE awarded 38 renewable projects totaling roughly 8 GW, but none had broken ground as of late October. Transmission constraints and new storage and transmission rules could affect project revenues and power costs.
1. Projects face delays
CFE awarded 38 renewable projects totaling roughly 8 GW, expanding Mexico’s private power investment pipeline. None had broken ground as of late October, and transmission constraints could lead to curtailment and lower revenue once projects begin operating.
2. Storage and transmission rules
New wind and solar projects must include battery storage equal to 30% of installed capacity, with at least three hours of discharge. Transmission rules effective October 19 tie legacy self-supply charges to wholesale-market costs, increasing exposure to the expense of moving power. Accurate generation and demand forecasts are expected to shape storage returns and procurement costs as grid capacity remains tight.
