Mexico Power Market Size (2024 - 2029)

Mexico Power Market Size Summary

The Mexican power market is poised for significant expansion over the forecast period, driven by increasing power demand due to urbanization and population growth. The market's growth trajectory is supported by upcoming power generation projects, although government policies favoring state ownership over private investment could pose challenges. The country's commitment to generating a substantial portion of its electricity from renewable sources by 2024 presents opportunities for renewable energy companies. Despite the rise of wind and solar power, thermal power plants, particularly those based on natural gas, coal, and oil, are expected to maintain their dominance in the energy mix. The government's prioritization of thermal power and ongoing projects, such as the development of natural gas-fired power plants in the Yucat√°n Peninsula, are set to bolster the sector.

The transmission network in Mexico has been evolving to meet the increasing energy demand, with significant investments planned to enhance infrastructure. The National Electric System Development Program (Prodesen) is spearheading the development of new transmission lines to improve accessibility and support the growing energy needs. The relocation of Asian companies to Mexico has further stimulated the market by reducing transportation costs and facilitating access to the North American market. Key projects, such as the modernization of the Tecamachalco–Tlacotepec transmission line, are expected to contribute to the market's robust growth. The market remains moderately fragmented, with major players like Enel SpA, Comision Federal de Electricidad, and Iberdrola SA actively participating in the sector. Recent government actions, including the acquisition of power plants from Iberdrola and enhanced cooperation with the United States on nuclear energy, underscore the dynamic nature of Mexico's power market.