The report 'The Renewable Energy Landscape in Mexico' reviews the current state of the renewable energy sector in Mexico, presenting insights from industry experts and data on projects, particularly in wind, solar, and geothermal energy. It highlights the challenges and opportunities within the sector, emphasizing the need for a clearer legal framework and adequate infrastructure to attract investment and develop renewable resources effectively. With significant potential for clean energy generation, the document outlines Mexico's shift towards a more sustainable energy model in response to growing demand.

1. The renewable energy
landscape in Mexico
In association with : RenovaMex 2014 • November 19th - 20th • Mexico City
The report ‘The renewable energy landscape in Mexico’ provides a
comprehensive review on the current situation of the renewable energy
sector in the North American country, plus offering exclusive interviews to
the Mexican Wind Energy Association and to Mr Rogelio Pérez Velarde -from
the renowned law firm Velarde, Heftye y Soria- for a more detailed analysis.
This publication is being issued prior to the opening of RenovaMex 2014, an
event that will take place on 19th - 20th November in Mexico City.
For more information about RenovaMex 2014 please visit our website:
www.fcbilatam.com/renovamex/maps

2. The renewable energy landscape in Mexico
Introduction contents
Interview to the law firm López Velarde,
Heftye y Soria. 3
List of all the wind, solar and geothermal
energy projects. 5
Map of all the wind, solar and geothermal
energy projects. 6
Interview to the Mexican Wind Energy
Association . 7
Evolution of Mexico’s wind power industry
in the last decade. 9
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What are the incentives offered by Mexico’s
new energy reform to developers, contractors
and suppliers of clean energies? What are the
renewable’s main obstacles to overcome in
order to take full advantage of the renewables’
identified potential? Which of these barriers
have already been removed by the latest legal
framework and its subsequent legislation? What is
going to happen with the PPA projects consisting
of less than 500 kW? How is the spot market
going to work from now on?
Renewable energies in Mexico are proven to
present an impressive potential for business, but
they are still defined by a high level of uncertainty
in relation to the changes to be implemented
by the gradual development of the energy
market reform, for it is understandable that the
renewable sector has voiced its concerns and
several questions about the industry’s general
outlook for the next years

3. The renewable energy landscape in Mexico
Interview to the law firm López Velarde, Heftye y Soria
Rogelio López Velarde: ‘The Mexican
energy reform must encourage a deeper
involvement of the private sector’
Rogelio López Velarde, Partner, Heftye y Soria, S.C.
Rogelio López Velarde is one of the best lawyers as far as energy issues are concerned, as he holds a
seat on the Advisory Council of Mexico’s Energy Regulatory Commission due to his broad expertise on
the subject. Besides being an authority figure within the sector, Mr López Velarde developed part of
his professional career at the state-owned petroleum company Pemex, as a commissioner lawyer at
both its Houston and New York City offices, and also as head of the international affairs unit of its Legal
Management department.
Mr López Velarde has also taken up other positions of relevance, such as the chairmanship of the
Association of International Petroleum Negotiators for Latin America or the presidency of the
International Area of the Legal Institute for the American Energy. FCBILATAM has talked to him about
his thoughts on the future energy scenario, the opportunities and challenges that the renewable sector
will face in the following years, and his expectations on the ongoing energy reform in Mexico.
In your opinion, what are the main openings and present impediments for the clean
energy business in Mexico?
The most visible concern nowadays for developers of renewable projects in Mexico lies in the lack
of legal clarity regarding the benefits to be drawn from the special regulatory scheme set for clean
energies, which are simply based on mere administrative resolutions that can be easily modified over
time. This sort of judicial uncertainty is still present, as developers have noticed that the legal rights
acquired after the introduction of the new energy legislation are just a few and quite difficult to claim.
That should be changed as soon as possible. Talking about openings and future prospects, I must say
that those are still huge, as there are plenty of renewable power sources that have not been properly
explored yet in Mexico.
Do you think Mexico could become a leading country in clean energies? Where would
you spot its most important assets and resources in this respect?
Mexico is a country that presents a privileged location for the exploitation of renewable energies, as it
comprises all sort of natural areas from which energy can be produced, including vast windy regions,
several coastlines, high levels of sunlight exposure and extraordinary sources of geothermal and
hydraulic power. For sure, Mexico should play a bigger role in this economic sector as it has massive
potential in all these areas.
What are the most crucial challenges to be handled by this industry in the upcoming
years?
The electricity system in Mexico and its legal framework are about to experience major changes in the
short term that will require plenty of new laws to be brought in, a situation that is a challenge itself for
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4. The renewable energy landscape in Mexico
the whole industry. Talking specifically about renewables, it is urgent to find out those mechanisms
that will let them take part in this new energy model in a competitive and sustainable way, something
that should be clearly reflected in the new package of secondary laws.
What kind of outcome do you expect from the energy reform that is being debated and
what other measures do you think would be essential to make sure clean energies are
an integral part of Mexico’s energy system?
We are eager to see the electricity network being completely redesigned after the enforcement of
the new energy legislation, with a more active participation coming from the private sector. On the
other hand, in order to ensure the full incorporation of clean energy sources into the new model,
it is essential to come up with a series of legal arrangements that make room for a competitive
and sustainable market for them to thrive. First of all, their value and usefulness must be properly
acknowledged, as well as their potential in relation to external markets. There also need to be
reasonable percentages of minimum purchases for customers and suppliers, and fiscal benefits for
these energies to facilitate their inclusion in the market.
Does Mexico provide an acceptable level of legal security to encourage investment in
this sector? What lessons can be learned from the same process happening in Spain, if
both scenarios are comparable?
The development of the new energy reform has given Mexico an outstanding opportunity to establish
a suitable and robust regulatory framework for the renewable sector to grow steadily, which would add
enormous value to an already present set of conditions (macroeconomic stability, structural reforms
and rules to protect free trade and private assets) that foster economic investment and that would
make ambitious projects within this industry a whole lot easier. The experiences that we have gathered
from other countries have proved that, although it is important to offer all sorts of incentives to clean
energies, these public initiatives should be justified in the potential profits to be extracted from its
participation in the market, they have to be sustainable in the long term and, of course, they need to
be aimed at the idea of creating a competitive and fair environment for them to operate.
List of all the wind, solar and geothermal energy projects
Mexico’s energy system comprises 4000 MW of wind, solar and geothermal power either being already
operational or on the way to being completely functional. Taking into consideration that the country’s
energy demand is currently growing at an annual rate of 4%, aside from the government’s commitment
to have 35% of its energy production coming from non-fossil sources by 2024, renewables are certainly
set to become an inevitable alternative to traditional power sources, as they are progressively securing
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5. The renewable energy landscape in Mexico
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Table 1.
Type Name State Installed
Capacity
(MW)
Developer Stage
Wind Bii Hioxio Oaxaca 234 Gas Natural Fenosa Renovables Under construction
Wind Bii Nee Stipa Oaxaca 26.35 Iberdrola Renewables Operation 2010
Wind Bii Nee Stipa IV Oaxaca 74 Iberdrola Renewables Operation 2014
Wind Cancun Quintana Roo 1.5 CFE Operation 2010
Wind Cementos Apasco Coahuila de Zaragoza 1 Ecotel
Wind Dominca I San Luis Potosí 100 Enel Green Power Operation 2014
Wind El Porvenir Tamaulipas 54 Grupo Ecos Operation 2013
Wind Eléctrica del Valle de México Oaxaca 67.5 Private
Wind Energías Ambientales Oaxaca 102 Private
Wind Eólica Arriaga Chiapas 28.8 Grupo Salinas Operation 2012
Wind Eólica del Istmo Oaxaca 164 Private
Wind Eólica Santa Catarina Nueva León 22 Private Operation 2012
Wind Eólica Zopiloapan (Bii Nee Stipa III) Oaxaca 70 Gamesa/Enel Green Power Operation 2013
Wind Eólicas Mexicanas de Oaxaca Oaxaca 90 Private
Wind Eurus I Oaxaca 38 Acciona Energia Operation 2009
Wind Eurus II Oaxaca 213 Acciona Energia Operation 2010
Wind Fuerza Eólica del Istmo I Oaxaca 50 Peñoles Operation 2012
Wind Fuerza Eólica del Istmo II Oaxaca 30 Peñoles Operation 2013
Wind Granja Sedena Oaxaca 15 Private Under construction
Wind Guerrero Negro (Puerto Viejo) Baja California 0.6 CFE Operation 1998
Wind Instituto de Investigación Eléctrica Oaxaca 0.3 Private
Wind La Mata – La Ventosa Oaxaca 68 EDF-EN Operation 2010
Wind La Rumorosa I Baja California 10 CFE Operation 2010
Wind La Venta I Oaxaca 1 CFE Operation 1994
Wind La Venta II Oaxaca 83 CFE Operation 2006
Wind La Venta III Oaxaca 102.85 CFE / Iberdrola Renewables Operation 2011
Wind La Ventosa Oaxaca 102 Iberdrola Renewables Operation 2013
Wind Los Altos Jalisco 50.4 Grupo Dragon Operation 2014
Wind Los Vergeles Tamaulipas 161 Under construction
Wind Oaxaca I Oaxaca 101 CFE/EYRA Operation 2012
Wind Oaxaca II Oaxaca 102 CFE/Acciona Energia Operation 2012
Wind Oaxaca III Oaxaca 102 CFE/Acciona Energia Operation 2012
Wind Oaxaca IV Oaxaca 102 CFE/Acciona Energia Operation 2012
Wind Pacífico Oaxaca 160 EDF Operation 2014
Wind Parques Ecológicos de México Oaxaca 79.9 Iberdrola Renewables Operation 2009
Wind Piedra Larga Oaxaca 228 Renovalia Operation 2012
Wind Sierra Juarez Baja California 155 Lenova Under construction
Wind Stipa Nayaa (Bii Nee Stipa II) Oaxaca 74 Gamesa/Enel GreenPower Operation 2012
Wind Sureste I phase II Oaxaca 102 Enel Green Power Under construction
Geothermal Cerro Prieto I Baja California 30 CFE
Geothermal Cerro Prieto II Baja California 220 CFE
Geothermal Cerro Prieto III Baja California 220 CFE
Geothermal Cerro Prieto IV Baja California 100 CFE
Geothermal Las Tres Vírgenes Baja California Sur 10 CFE
Geothermal Los Azufres Michoacán 191.6 CFE
Geothermal Los Humeros Puebla 51.8 CFE
Solar Aura Solar I Baja California Sur 30 Gauss Energía Operation 2014
Solar Autoabastecimiento Renovable Aguascalientes 1 Private
Solar Celulosa y Papel de Bajío Guanajuato 0.566 Private
Solar Cerro Prieto Baja California 5 CFE
Solar Santa Rosalía Baja California Sur 1 CFE
Solar Tai I Durango 16 Eosol Energy Operation 2014
Source: AMDEE (Mexican Wind Energy Association), Secretaría de Energía (Mexico’s Energy Ministry)

6. The renewable energy landscape in Mexico
a remarkable position in the energy landscape. For the time being, clean power production is being led
by the wind energy system, with better-developed infrastructures, and this technology is expected to be
commanding the whole renewable industry for the next 10 years at the very least, yet it has also been
forecasted that the generation of solar energy will rise notably over the next 15 years.
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1 WInd
Guerrero Negro (Puerto Viejo)
2 Solar
Cerro Prieto
3 Geothermal
CerroPrieto I
Cerro Prieto II
Cerro Prieto III
Cerro Prieto IV
4 Solar
Santa Rosalía
5 Geothermal
Las Tres Vírgenes
6 Solar
Servicios Comerciales de Energía
7 WInd
Cementos Apasco
8 WInd
Eólica Santa Catarina
1
7
Wind
Solar
Geothermal
Source: Secretaría de Energía (Mexico’s Energy Ministry), Mexican Geothermal Association
The wind energy sector is currently leading the production of clean power in Mexico. By the end of
2013, this technology accounted for more than 1900 MW already in use, while around 15000 MW are
expected to be generated for the period 2020-2022. Over the last 10 years, more than 3800 million
dollars have been invested in the development of wind energy infrastructures and supplying in Mexico.
3
5
14
15
4
6
8 9
2
10
13
11
12
16
17
18
19
20
9 WInd
Los Vergeles
10 Solar
Autoabastecimiento Renovable
11 WInd
Los Altos
12 WInd
Dominica I
13 Solar
Celulosa y Papel de Bajío
14 Geothermal
Los Azufres
15 Geothermal
Los Humeros
16 WInd
Fuerza Eólica del Istmo I
Fuerza Eólica del Istmo II
El Valle de México
Instituto de Investigación Eléctrica
Parque Eólico de México
Bii Nee Stipa
Stipa Nayaa (Bii Nee Stipa II)
Eólica Zopiloapan (Bii Nee Stipa III)
Eurus I
Eurus II
Bii Hoxio
Granja Sedena
Sureste I phase II
Piedra Larga
Pacífico
17 WInd
Ce Oaxaca Cuatro
Ce Oaxaca Dos
Ce Oaxaca Tres
La Venta
La VEnta II
La Venta III
Eólicas Mexicanas de Oaxacal
Energías Ambientales
18 WInd
Eólica Arriaga
19 WInd
Cancun
20 WInd
Yuumil IK
Map with all Wind, Solar and Geothermal projects

7. The renewable energy landscape in Mexico
Interview to the Mexican Wind Energy Association
The lack of infrastructure is the
bottleneck for the development of
renewable energies in Mexico
Héctor Treviño, executive director of the Mexican Wind Energy Association (AMDEE)
Héctor Treviño is one of the most proficient specialists of the Mexican renewable sector, after more
than six years of relentless involvement in the promotion of clean power initiatives within decentralised
organisms both at federal and state levels, along with a vast professional experience in the field of
international business in regions such as North America, Asia, Latin America and the Caribbean.
Due to his role of executive director at the Mexican Wind Energy Association, FCBILATAM has
approached Mr Treviño to find out more about his work towards a successful integration of the wind
energy industry into Mexico’s energy landscape. Furthermore, it has been relevant to ask him several
questions about his understanding of all the decisions to be made in order to guarantee a rapid
development of the wind energy sector and to secure its solid growth in coming years.
How would you describe the current state of Mexico’s wind energy industry?
According to research conducted by PwC (PricewaterhouseCoopers) along with AMDEE (Mexican
Wind Energy Association), more than 20GW of potential wind power in Mexico currently exists with
a very good capacity factor. By the end of 2013, 2GW of wind power were already in use and 4 GW
are presently bound to be operational for a three-year period (until 2016) as production is in different
stages of progress; most of this energy is subjected to a power purchase agreement (PPA). There
are some energy auctions these days set up by the Federal Electricity Commission, but not enough
and not especially relevant since the electricity system belongs to a public monopoly controlled by
the federal government. However, a brand new supply scheme was created recently to allow the
central government to sell energy to private companies under the legal form of bilateral contracts,
without the intervention of the Federal Electricity Commission. The previous situation was basically
explained by one of the rules coming directly from the Mexican Constitution, as it stated that only the
government was competent to generate electricity in the country. In December 2013, this reality was
slightly modified by the introduction of the latest energy reform, a legislation that is currently being
complemented by the development of secondary laws.
What are the hardships and the key technological challenges to confront in order to
enhance the presence of wind power in Mexico’s future energy model?
The lack of an adequate infrastructure is undoubtedly Mexico’s bottleneck in this regard, as you will not
find proper structures wherever there are sources for the potential development of wind power, the
likes of transmission lines and sub-stations; and when this sort of infrastructure is in place, it generally
suffers from insufficient capacity that result in a situation where overloaded lines cannot carry more
energy. What is happening nowadays in Mexico resembles the problems Brazil is also encountering in
this issue, as the lack of infrastructure in the country is effectively blocking the production of up to 1GW
of wind power. As far as technological advances are concerned, it has been noted that the new wind
turbines with larger blades have been able to exploit certain areas in Mexico that did not seem suitable
for that purpose in the beginning: for instance, the states of Tamaulipas, Nuevo León and Coahuila in
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8. The renewable energy landscape in Mexico
the north east, and Baja California in the north west. I am not that familiar with the Chilean context,
but I understand that the lack of infrastructure in this country, as it is occurring in Brazil, is stopping the
production of around 1GW of wind power.
Mexico’s energy reform ultimately aims to encourage private investors to take part
in PEMEX, but what is the wind energy sector particularly expecting from this new
legislation? What is, in your opinion, the appropriate legal framework to be shaped in
order to promote a strong presence of clean sources in the new energy model?
First of all, it is important to highlight that the commitment made by President Peña Nieto’s
administration to reach a 35% of electricity production out of clean sources by 2024 (including
hydroelectric and nuclear sources) is such great news. The most important constitutional change in
this aspect was to redefine the status of the electricity production, which used to be referred to as
‘strategic’, meaning that only the government could be involved in this matter, and now is considered a
‘priority’, implying that private entities are able to cooperate with the administration in its development.
On the other hand, the National Energy Control Centre (CENACE) is about to become independent
from the CFE (Federal Electricity Commission) to act as an autonomous regulatory body, the kind of an
Independent System Operator (ISO) that is conceived to oversee the evolution of the electricity system
in Mexico. That is the starting point for us to campaign intensely towards a higher share for clean
energies in future public contracts launched by the CENACE.
Mexico’s Energy Ministry (Secretaría de Energía) has pointed out that growth rates in
the wind energy industry are expected to soar remarkably in the following years, as
production is reportedly being increased from 1469.2 MW generated in 2012 to an
estimated total capacity of more than 9092.4 MW for 2018 – an additional upsurge of
7,623.2 MW. Is this goal achievable or ambitious enough? What is the view of Mexico’s
wind energy traders with regard to these figures?
Those are the objectives defined by Peña Nieto’s administration, to reach the ceiling of 9,500 MW of
wind power to be generated by 2018. This goal is surely feasible as long as three legal conditions for
the future market are respected and preserved: to safeguard the role of the Energy Bank, to guarantee
a compulsory distribution of power coming from clean sources and to keep the current calculation of
the energy transmission costs, based on a postal stamp model that offers a great deal of transparency.
The new set of secondary laws still in the making is aiming at the creation of a spot market that would
favour wholesale energy trading among participants, in the style of a stock exchange. Yet there is not a
proper market in Mexico for this project to become a reality and it cannot be created merely by law, as
all the power that is produced nowadays in Mexico has already an owner or a predefined recipient.
As I said before, the goal is challenging but reachable if the conditions discussed earlier are maintained
and if there is a satisfactory infrastructure to support the process. As a spokesperson for AMDEE, I can
say we are very excited about the prospects to be drawn from Mexico’s energy reform, as it is to put
and end to a monopolistic situation and to create new opportunities and possibilities for all the agents
involved in this industry. We have undertaken all sorts of lobbying actions to ensure that the three
requirements explained before are in place during what we call the ‘transition period’, which will be
finished as soon as we can meet the standards for the creation of a spot market.
Our last concern, specifically linked to the role to be played by renewable energies, lies on the
future public tenders set up by the CENACE (National Energy Control Centre), as they need to offer
a defined percentage of participation for clean energies and establish clear technology preferences
(wind, solar power, etc.) in order to get closer to the famous 35% goal of power generated by clean
sources by the year 2024.
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9. The renewable energy landscape in Mexico
What is the position currently held by Spanish companies in the Mexican wind power
sector? Is their performance more or less significant than that of other corporations
coming from other countries?
In the present context, Spanish companies are placed as leaders of wind power development in
Mexico, whether they are manufacturers like Acciona and Gamesa or other well-established developers.
Nevertheless, there is a fierce competition going on in the business of wind turbine construction: even
though Vestas is their main rival these days in this area, the potential opportunities in the wind sector plus
the incentives offered by the new energy laws have opened up the market for other societies that are
getting ready for the battle, such as Alstom (France), General Electric (USA) or Siemens (Germany). And it is
quite likely that new companies from India or China will settle here eventually, especially manufacturers.
Our last question refers to the partnerships and associations that are being built up to
boost Mexico’s wind capacity. What are the main areas of work in the medium and long
terms to make the most of this opportunity?
We are presently focusing our efforts on the task of heightening the chain value thanks to an
agreement between AMDEE and Mexico’s Energy Ministry, but we are also taking part in different
projects related to the sustainable development of all the regions displaying high levels of wind power
potential. We have conducted several researches to study the economic, social and environmental
impact of these activities in all the designated territories, while trying to raise awareness about
the advantages and benefits offered by renewable energies for local economies. All our activity
programmes and initiatives are carried out with the support of different organisations belonging to the
federal government and, in some cases, to the executive branches of some Mexican states.
Evolution of Mexico’s wind energy sector in the last decade
2MW
85MW
517MW
2MW
85MW
929MW
1992MW
84MW
202MW
1348MW
2100MW
We sincerely hope that you have found this report interesting and useful, please bear in
mind that several professionals and other experts in wind, solar and geothermal
energy will be providing valuable insights at RenovaMex 2014 and discussing
key topics to deal with all the financial, technology and regulatory challenges
connected to the renewable energy sector.
For more details about RenovaMex 2014, please visit our website:
www.fcbilatam.com/renovamex/mapas or contact: Mr Brandon Páramo
T: +44 20 7422 4302
E: brandon@fcbilatam.com
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2500
2000
1500
1000
500
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Installed MW
All the information and data published by this report was last updated in June 2014.