Mexican microgrid market grows as companies seek sustainable supply security

The Mexican microgrid market is experiencing rapid growth as companies look to ensure reliable power supply, lower their energy costs and reduce their carbon footprint.

The market expanded by 31% over the last year to reach 3,891MW, according to Carlos Aurelio Hernandez, head of energy at employers federation Coparmex, citing data from regulator CRE. 

The market could reach 10,000MW to 13,000MW by 2033, he said during a webinar organized Tuesday by distributed generation company Enlight. 

Nearly all of the microgrids in Mexico are solar photovoltaic systems, usually with attached battery storage systems.

Aidana Velazquez, head of institutional relations at Enlight, said that power cuts experienced by Mexico in recent years have increased the appeal of microgrids.

In some cases, microgrids can reduce a company's electricity costs by 35% and generate a positive return within three to four years, Velazquez said.

Regulations

Hernandez and other speakers called on the CRE to lift the current limit on distributed generation, which stands at just 0.5MW. 

In Brazil, the limit is 5MW in certain cases.

Participants also criticized a CRE regulation which prohibits companies with microgrids from selling any excess electricity generated to other companies or into the wholesale market.

"This is quite stifling when you're considering making an investment in a microgrid," Hernandez said.