Clean energy transition in Mexico: Policy recommendations for the deployment of energy storage technologies

The adoption of a constitutional energy reform in 2013 in Mexico opened the door for private investment in the electricity sector and directed the country towards a clean energy transition. However, the expanding role of renewable energy poses new flexibility challenges for the Mexican power system. Even though energy storage technologies are one of the many solutions to add grid flexibility, they have not yet been implemented in Mexico and their consideration in new energy policies is very limited. Based on a comparative policy analysis between Mexico, the US and Germany, this paper seeks to provide policy recommendations to incentivise the deployment of energy storage technologies in Mexico. The main priority for Mexican policymakers should be to create a legal definition of energy storage and design clear market regulations. Mexico should also focus on funding demonstration projects of well-proven technologies and introducing financial incentives to accelerate investments in energy storage. Procurement targets are a key policy to create storage markets in the short term.

Automated summary

The adoption of a constitutional energy reform in Mexico in 2013 allowed private investment in the electricity sector and promoted a transition towards clean energy. However, the increasing role of renewable energy presents new flexibility challenges for Mexico's power system. A key priority for Mexican policymakers should be establishing a legal definition of energy storage, clear market regulations, funding demonstration projects, and introducing financial incentives to accelerate investments in energy storage.