The Power import in Mexico reached 3,694 GWh in 2020
The indicator recorded a historical growth at a CAGR of 17% between 2017 to 2020
Power import in Mexico recorded a YoY decline in 2020
Mexico was a net importer of electricity from 2000 to 2002. In 2000, the country imported more electricity than its electricity exports. Since 2003, the country’s power exports have consistently exceeded imports. In 2020, the country imported less electricity than its exports. Mexico imports electricity from the US (mainly from Texas and California) and Guatemala. The country exports electricity majorly to the US.
Supply Security
In addition to oil and gas, Mexico also has large geothermal and wind potential. It is connected to Texas and California, in the north, and to Belize, in the south. These grid connections have been developed primarily for electricity export purposes. On the northern border in particular, grid connections are in place to facilitate the export of power from wind farms to demand centers in Texas and California.
The country has announced plans to add up coal power plants despite the national commitment to increase clean energy use. The government plans to reactive a pair of coal power plants on the Texas border. This will reduce the country’s dependency on Texas and California for power imports.
Challenges
One of the challenges faced by the Mexican power sector is the decline of gas production in the peninsular region of the country which has hindered the construction of gas-based power generation plants. This has led to an increase in prices because of the requirement of additional electricity imports from neighboring countries. However, the government is tackling this problem by commissioning new gas pipelines and collaborating with major utilities such as Canada's TC Energy Corp to develop new natural gas pipelines.
Removal of custom duty on Imported Solar Modules
In 2018, the Mexican solar association appealed on the customs duty on solar PV module imports, which the Mexican Tax Administration Service (SAT) introduced in 2015. The Federal Court of Fiscal and Administrative Justice accepted the appeal and repealed the custom duties imposed on imported solar modules.
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