Electricity in Mexico in 2023/2024

In the last 12 months, from August 2023 to July 2024, Mexico's electricity consumption has been heavily reliant on fossil fuels, with more than three-quarters (around 75%) of electricity generated from these sources. Specifically, natural gas alone accounts for more than 60% of the total electricity, with oil and coal contributing to approximately 6% each. In contrast, clean or low-carbon energy sources make up around 21% of the electricity generation. This includes wind (almost 6%), hydropower (over 5%), solar (just over 5%), nuclear (around 3%), and geothermal (a little over 1%). Consequently, there's a stark imbalance between fossil and low-carbon energy usage for electricity in Mexico, highlighting a significant need for improvement towards greener energy solutions.

Suggestions

To enhance its low-carbon electricity generation, Mexico can learn valuable lessons from countries with successful low-carbon energy strategies. For instance, Uruguay, a country with a similar economic profile, harnesses about 36% of its electricity from wind power, demonstrating that scaling up wind energy is achievable. Similarly, Chile has managed to generate over 21% of its electricity from solar power, suggesting that Mexico, with its abundant sunlight, could significantly boost its solar energy output. Moreover, looking at nations like France and Slovakia, where nuclear power generates close to two-thirds of their electricity, Mexico can consider investing more robustly in nuclear energy, which provides steady and reliable electricity while minimizing carbon emissions.

History

The history of low-carbon electricity generation in Mexico showcases several noteworthy ups and downs, particularly in the hydropower sector. During the early 1980s and late 1990s, significant increases, such as a rise of 7.7 TWh in 1981 and 8.2 TWh in 1999, were followed by considerable declines, like a decrease of 7.1 TWh in 1986 and 6.4 TWh in 1994. A similar pattern continued into the 2000s, marked by an 11.9 TWh increase in 2008 but a substantial 12.5 TWh drop in 2009. In recent years, solar energy gained prominence with a 9.2 TWh jump in 2020, although it saw a decline of 9.2 TWh in the 2023/2024 period. Interestingly, 2023 witnessed mixed changes: a reduction of 15.2 TWh in hydropower but an increase of 6.8 TWh in solar, underlining the potential for growth amidst volatility in other low-carbon sources.

Electricity Imports and Exports

Balance of Trade

Data Sources