During the last couple of years there has been a lot of talk and controversy surrounding Mexico’s renewable energy markets. This week we want to look into one particular energy source that has been booming regardless of all this turmoil: solar.
Favorable policies, competitive prices, and innovative projects have been key drivers to unlocking its true value, making it a leader in the global arena. Solar power is also a key driver of Mexico’s overall transition to a low-carbon economy, pushing it closer to achieving net-zero emissions by 2050 in line with the 2015 Paris Agreement.
Some fast facts on just how big solar has become for Mexico:
- Solar power represents 29% of all renewable energy consumed across the country, and with it, close to 9% of all energy consumption.
- It is the second-most used renewable energy source, right after hydropower.
- Energy costs dropped 76% in 2017 when the Villanueva Solar Park was built, powering 1.3 million houses across 2,400 hectares of land.
- Mexico ranks 10th in the world in terms of installed solar power capacity according to IRENA, growing from 0.4 gigawatts in 2015 to 13.7 as of 2024.
This data clearly shows that demand for solar energy is at an all-time high. As companies are trying to structure formal environmental strategies within their ESG frameworks, turning to solar has become a “low hanging fruit” solution. It’s relatively easy to either install on-site or purchase. It is also one of the cheapest and most stabilized renewable options on the market.
So, bottom line, should you hop onto the solar trend?
Energy efficiency and/or emissions reductions might not be your top priority right now, and that’s okay. We are firm believers in focusing on material topics (what is most important for you and your stakeholders).
That being said, we also think that no company will be able to¾ nor should¾ steer away from reducing their carbon footprint for very long. Shifting towards renewables will become increasingly necessary as regulations on emissions tighten. Thus, understanding how solar energy works might be worthwhile.
I hope you found this interesting. As usual, if there is anything we can help you with, or if there is an ESG topic you would like to know more about, please let us know.
CEO, Miranda ESG
Contacts at Miranda Partners