Are Mexico's energy storage operations in a nascent stage?

Mexico’s energy storage operations are in their nascent stage compared to more widespread developments in the U.S. and several European countries.

Will Mexico develop energy storage technologies in the next decade?

However, we expect Mexico to develop its energy storage technologies significantly over the next decade, as well as its lithium mining industry, as it increases its renewable energy capacity as part of a global green energy transition.

How can capacity charges be reduced in Mexico?

In Mexico, capacity charges for medium- and high-voltage customers are set with reference to their maximum demand between 6 and 10 PM. Therefore, reducing the amount of electricity consumed from the grid during these peak hours can significantly reduce capacity charges and the overall cost of energy.

What is the cheapest energy source in Mexico?

Today, renewables are the cheapest source of power. The cost of installing and generating your own energy in Mexico has declined significantly, we have reached a point where it is cheaper to locally generate electricity using solar photovoltaic technology rather than buy it from the CFE.

Could Mexico's energy sector be nationalized?

Mexico has the potential to leverage its resource power, with its huge lithium reserves, to play an integral role in the future of the global battery sector. However, the nationalization of its energy sector could somewhat hinder this possibility.

Will Mexico expand its solar market?

As Mexico expands its solar market, we expect companies to increase their investment in battery storage operations to optimize the solar power generated across the country. But Mexico will have to improve its regulatory framework for renewable energy for the industry to become more efficient and attractive to investors.