Mexico is set to become the largest solar PV market in Latin America, with around 2 GW of installs expected annually. Political and regulatory uncertainty do not appear to be affecting investor interest, with more opportunities than challenges present. pv magazineattended GTM Research’s Solar Summit Mexico last week to report on the latest developments in the Mexican market.
GTM Research’s Solar Summit Mexico, which took place in Mexico City on February 13 and 14, provided a comprehensive insight into the Mexican solar energy landscape.
All participants were in agreement that Mexico is on track to become one of the world’s most interesting solar markets in the coming years. Despite the challenges, which were highlighted during the conference by CEOs, analysts and government officials, the market presents an abundance of opportunities across all segments, chiefly due to its stable regulatory framework, which was created alongside the country’s energy reform three years ago.
The energy reform: A point of no return
Although Mexico’s upcoming presidential elections and possible changes to the North American Free Trade Agreement (NAFTA) were highlighted as points of uncertainty in terms of the future of both the country’s economy and energy market, it was agreed that the energy reform – introduced in December 2013 and which has enabled large amounts of solar and renewable energy capacity deployment, while radically changing the hydrocarbon and electricity sectors – is a point of no return.
The reform was enacted via a series of constitutional amendments, which will require all future governments that want to introduce substantial changes to the reform, to have a large majority and ample consensus.
That the energy reform could be improved, however, was also stressed by several speakers, particularly regarding new provisions for storage, grid capabilities, and more transparent prices for the energy market.
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