Mexican distributed power generation market poised for steady growth

• 11 years ago (2013-05-30)
• David Flin

North America 1021

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According to a new report from Frost & Sullivan, Analysis of the Mexican Distributed Market, the distributed power generation market in Mexico is expected to grow steadily. The market will witness strong demand from oil, gas and mining companies in Eastern Mexico, a region not served by the national grid.

Frost & Sullivan said that the market earned revenues of over $210 million in 2012, and estimates that this will exceed $370 million by 2017, with an annual growth rate of 11.2 per cent. Insufficient centralised electricity has compelled several consumers, along with incomplete grid facilities in large, isolated areas, particularly in the Eastern Mexico region, offer huge scope for distributed power generation in Mexico.

Martin Cataife, Energy and Environmental Analyst for Frost & Sullivan, said: “Recent net metering regulations in the country have encouraged the assembly of new distributed power generation units in households and small commerce consumers. Net metering of expensive tariffs in the industrial segment has also sustained overall distributed power generation installed capacity growth rates. Internal combustion generating sets will remain the preferred solution. Nevertheless, market revenues from renewable energy solutions are expected to increase in the medium to long term.”