Wholesale Electricity Price Projections for Mexico

A growing market in need of investment

Mexico’s power market continues its growth, with a rapidly increasing demand
and little capacity additions, the market is in great need for investment and
political change could be around the corner.
Many developers and investors are ready to push with their energy projects,
waiting for the policy landscape to clear. Some players expect that the tight
reserve margins and recent load loss events will push the change to more market
openness and the potential growth from near-shoring will make it inevitable to
restore things and incentivise private investment for generation and even
transmission.
Mexico’s transition to clean energies has slowed down with the permitting
bottlenecks, but this has not stopped developers from continuing work in their
project pipelines, with 10s of GW in Ready-To-Build projects. The interest for PPAs
from corporate offtakers is also in the rise, as international ambitions objectives becoming a priority for this kind of companies, ahead of the national clean energy
targets.
Our zonal modelling approach allows us to capture the most important market
trends and reduce uncertainty in our inputs, which is vital for providing price
projections to 2060. Our analysis is backed by years of modelling and market
experience in Mexico and the rest of the world.
Therefore, in our latest Mexican report we explore:
• How might renewables grow and what effect would this have on capture
prices?
• What are the effects of intermittency on power prices and the capacity mix?
• What is the long-term value of existing assets and how relevant do they
remain?
• What will the future hold for the electricity sector?