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Mexico Will Be "Key Expansion Market" for Wind Investments

23 April, 2015

As Mexico moves to generate at least 35 percent of its power from renewable sources by 2024,the government plans to construct eight wind farms and invest upwards of $3.5 billion by 2018 to increase the nation’s wind capacity by 75 percent.

“Mexico is definitely emerging as one of the large markets for wind energy,” shared Marco Graziano,president of Vestas Mediterranean,which is one of the world’s largest wind turbine manufacturers. "Vestas sees Mexico as a main target after the country opened its energy and electricity industries to allow for private investment."

According to Bloomberg Business,Vestas plans to bid on contracts to develop new energy projects in Mexico and already operates seven wind projects throughout the country. In late January,Reuters reported that Mexico will see a total of $14 billion in new wind energy investment dollars as the nation’s wind energy capacity increases from around 2,551 Megawatts (MW) to at least 9,500 MW.

“We are looking at different options to decide where to bid in Mexico,” Graziano shared. “Wind is still having low penetration here so there is very good potential.”

Also of note,the Mexican government recently announced that it expects two new wind farms to be installed on the Yucatan Peninsula,in addition to a 70 MW project that was already approved last year. Foreign companies are reportedly working to obtain the necessary permits for the two new wind farms,which are scheduled to begin construction by the beginning of 2016,according to a statement last Monday by Jorge Carlos Berlin,the regional delegate of Mexico’s ministry of the environment. The new farms will be built in the areas around Temax,Baca and Sinanche.

Finally,General Motors (GM) announced that it will add wind power to its energy portfolio for the first time after a 34 MW wind farm in Palo Alto,which lies 325 miles northwest of Mexico City goes online during the second quarter of 2015. Around 75 percent of the energy produced by the wind farm will be used to power GM’s factory and plant in Toluca,which lies about one hour west of Mexico City. It will also supply some power for three other GM plants in a move that will increase the amount of energy the company derives from renewables to 12 percent,eliminating more than 40,000 tons of carbon dioxide emissions each year.

“The company [also] expects to save about $2 million annually once the Palo Alto wind farm operates at full capacity,” GM revealed. “The project will also help GM meet its 2020 renewable energy goals four years early.”