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Analysis of the Mexican Distributed Power Generation Market

Insufficient Centralized Electricity Provision Drives the Market

  • Research Code : NC14-01-00-00-00
  • SKU : EG00157-NA-MR_00652
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  • Release Date : 01-Apr-2013
  • Region : North America
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The failure of the traditional model for the electricity market, which includes a large infrastructure for power generation, transmission, and distribution, is laying the groundwork for a distributed power generation (DPG) model. Key activities in isolated areas of Mexico, such as in mining and oil and gas, are expected to increase their gross energy consumption and therefore incorporate new DPG solutions. In isolated areas, DPG is associated with diesel gensets rather than photovoltaic and small wind turbines. Despite certain segments, such as heavy industry, being driven to DPG as a result of high electricity rates, CFE's monopoly as the sole power utility restricts DPG growth through regulations and subsidies to residential consumers.

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