Fossil-fuel reliant Mexico could soon see wind and solar gain much more prominence, backed by robust battery storage infrastructure, according to a report by the Institute for Energy Economics and Financial Analysis.
IEEFA said that through a revised energy policy framework under President Claudia Sheinbaum, 7,410 megawatts of utility-scale solar and wind projects were selected for construction, out of a proposed 38,000 MW in June.
Of these, 6,700 MW were for photovoltaic solar, while 700 MW are wind projects, with all projects required to have battery storage equivalent to 30% of their respective capacity.
Mexico is targeting the addition of roughly 20,000 MW of renewable generation and 5,000 MW of battery storage by 2030, according to the report.
The expansion could mark a reversal from the past several years, when growth in wind and solar generation largely stalled. The two sources supplied about 3.2% of Mexico's electricity in 2017 before climbing to nearly 12% in 2021, but their share has changed little since then.
That being said, fossil fuels have continued to dominate the energy mix, with natural gas accounting for 64% of generation in 2024, up from 22% in 2000, while oil's share plunged from 45% to just over 7% over the same period, with coal at 7%.
Mexico could see a transition similar to that experienced in neighboring US states, the report said. Wind and utility-scale solar supplied about 52% of New Mexico's electricity in 2025, up from 8% in 2015, while their share of Texas generation has climbed above 34%, growing seven times faster than fossil fuels.