However, we expect Mexico to develop its energy storage technologies significantly over the next decade, as well as its lithium mining industry, as it increases its renewable energy capacity as part of a global green energy transition.
Mexico’s energy storage operations are in their nascent stage compared to more widespread developments in the U.S. and several European countries.
Energy storage projects are still considered as a luxury in Mexico as currently they are too expensive to be financially viable. Energy storage infrastructure will require private sector financing.
Mexican law does not currently specifically consider energy storage. However, it is anticipated that upcoming business practice manuals that are being drafted will include several provisions in connection with energy storage.
These new requirements for the reliability of the Mexican electricity system may force CENACE (the National Centre for the Control of Energy) to launch several auctions to purchase ancillary services that may have a positive impact for electricity storage projects.
Presently, there is not a strong demand for energy storage in Mexico. However, after the electricity reform and the commencement of operations of the Wholesale Electricity Market has opened up the market to private investments, other electricity trading alternatives may be developed in Mexico.