Power generation in Mexico: How do we get the electricity we consume?
From charging our mobile devices to lighting up our cities, generating power for electricity is an integral part of our daily lives and a critical requirement for all industries.
According to the Ministry of Energy (SENER), Mexico has a generation capacity of approximately 80,000 megawatts (MW), far exceeding the average demand of 50,000 MW. But have you ever wondered how that energy is generated? Here's how.
History of Electric Power in Mexico
Mexico has a long history of power generation. From the first hydroelectric power plants to modern solar and wind power plants, our country has constantly evolved in producing electricity due to its industrial, technological, and social development.
In 1879, the first electric light plant was installed in León, Guanajuato, to illuminate Hidalgo Park. In 1881, the first electric tram line was inaugurated in Mexico City. During the first decades of the 20th century, foreign companies began establishing themselves in Mexico to take advantage of the country's great hydroelectric potential.
1937, the Federal Electricity Commission (CFE) was created to control, regulate, and expand generation. In 1960, President Adolfo López Mateos nationalized the electricity industry, consolidating the CFE as the leading electricity company in Mexico. In the 1970s and 1980s, the construction of nuclear plants began, with the Laguna Verde nuclear power plant being the most prominent.
At the beginning of the 21st century, with growing concern about climate change and sustainability, the diversification of energy sources was sought with investment in renewable energies such as solar and wind. Finally, in 2014, the Energy Reform was enacted, which made it possible to boost competition and investment in the sector through private participation in generating and marketing electricity. The Wholesale Electricity Market (WEM) began to operate formally in 2016.
Energy Sources in Mexico
Mexico has a wide variety of power generation options. According to 2021 data, the country's energy matrix is made up of the following sources:
1. Thermoelectric
Conventional thermal power plants use fossil fuels such as coal, natural gas, or oil to heat water and produce steam, which drives electricity turbines. Natural gas is Mexico's leading resource for thermoelectric generation, accounting for about 55% of production in 2021. It is followed by oil and its derivatives, as well as coal.
Combined cycle plants are like conventional plants, but they are considered more efficient because they have an additional turbine driven by air heated with fossil fuels. In total, the country's thermoelectric generation amounts to approximately 50 terawatts.
2. Hydroelectric
It uses water movement to generate electricity. Mexico has 86 dams and hydroelectric plants that take advantage of the flow of rivers and waterfalls, with an approximate production of 6 terawatts.
3. Solar
This renewable and sustainable resource has been popular with Mexico's abundant sunlight. These plants can be solar thermal (they use solar heat to heat water) or photovoltaic (they directly transform solar energy into electricity).
In Mexico, more than 80% of the Mexican territory is viable for developing solar projects, and there are currently 23 solar plants capable of producing approximately 4.0 terawatts.
4. Wind
The wind is used to move turbines that generate electricity. Mexico has several areas with high wind potential, especially in the Isthmus of Tehuantepec region. Currently, 31 wind farms are in Mexico, spread across nine states, producing 5.8 terawatts.
5. Nuclear
Although it is spread on a smaller scale, Mexico also generates electricity from nuclear energy, specifically at the Laguna Verde nuclear power plant, where nuclear fission is used to heat water and generate steam that drives a turbine. This plant generated 2.1 terawatts in 2021.
6. Emerging sources
Other sources such as geothermal power plants, which take advantage of the earth's heat; biomass plants, which burn organic matter, and tidal power plants, which use marine movement, have already been successfully adapted in other countries and could be part of the electricity generation landscape in Mexico in the not-too-distant future.
Once generated, the electricity is transmitted and distributed through infrastructure such as towers and underground cables to substations, where the electrical voltage is adjusted for distribution to homes and businesses.
What is the future of energy in Mexico?
Mexico is in the middle of an energy transition, with expectations of growth and adaptation to new, cleaner technologies. With a focus on sustainability and emission reduction, the share of renewables in the national energy mix is expected to increase considerably in the coming years.
According to the Ministry of Energy's National Electric System Development Program (Prodesen) 2023-2037, the goal is that 50% of the energy produced will come from clean sources by 2050. The program contemplates adding 150 MW of nuclear capacity and converting 1,024 MW of combined cycles to use a combination of natural gas and green hydrogen.
In Enel, we know that Mexico's energy future is promising, with a strong focus on sustainability and innovation. Thanks to our global experience, we can help boost your savings and sustainability opportunities at WEM. We aim to be your best ally, create value, and advise you to maximize energy efficiency.
We have the ideal energy solution for your company.
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