Possible paths for Mexico's electricity system in the clean energy transition

Abstract

This paper analyzes possible paths for Mexico's Electricity System. It shows that under the current dispatch order and minimization of electricity production-cost guidelines, Mexico will not reach the 50% clean electricity goal in 2050; however, this goal could be achieved before 2030 if the government favors CO2 minimization, with a low impact on energy costs. The effects of pollution are analyzed considering cost and CO2 minimization guidelines, combining four energy demand growth scenarios and three investment growth scenarios. Finally, we show that if Mexico wants to take advantage of nearshoring, it is essential to consider the presented alternatives.

Topics & Concepts