Mexico Energy Sector aims to Expand Clean Energy Transition by 2030

By Shubhendra Anand , 25 April, 2025

Mexico is progressing rapidly in the renewable energy sector, envisioning double its production by 2030. By 2024, 35% of electricity should come from clean sources, compared to 29% in 2022. With a focus on solar, geothermal, wind, and hydroelectric power sources, the country has set a target of achieving a 100% increase in its installed renewable energy capacity by 2030.

Based on the new targets, Mexico hopes that by 2024, 35% of electricity generated in the country will be from non-polluting sources, while in 2022, only 29% was so. The government expects to spend $48 billion on its renewable energy sector to accomplish this aim. Mexico is now Latin America's second-largest solar energy market, with an installed capacity of more than 7 GW solar photovoltaic (PV) systems in 2021. It should be noted that the revised targets will most likely have an additional positive effect on the further expansion of the sector.

However, energy experts are worried about the gaps in policy and financing needed to help Mexico achieve its climate commitments. The federal budget for 2023 also did not include enough provisions for the development of renewables, while the Mexican energy regulator has prohibited private funding into the industry. A report released in Mexico, named PRODESEN from 2024 to 2028, highlights that "It can be noted then that the increase in installed capacity with wind additions in the PRODESEN be because wind facilities sell energy line where it is most needed as with energy projects in solar facilities where the local daytime marginal price is too low making the returns on the investment too hard to get,'"

Still, efforts to address these challenges are underway, and these adjusted targets align with sweeping commitments made by Mexico to lower the country’s carbon emissions and work towards a more sustainable energy mix. The renewable energy industry in Mexico will most likely thrive thanks to government support and investment from the private sector. Further, the Mexican government targets to achieve 45 percent of clean energy by the end of 2030 in the country. It aims to invest in solar, wind, and hydroelectric projects. 

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