IMARC Group has recently released a new research study titled “Mexico Power Market Report by Generation Sources (Thermal, Hydro, Renewable, and Others), and Region 2026-2034”, offers a detailed analysis of the market drivers, segmentation, growth opportunities, trends and competitive landscape to understand the current and future market scenarios.
Market Overview
The Mexico power market size reached 95.9 GW in 2025 and is expected to grow to 128.0 GW by 2034, reflecting a CAGR of 3.26% during the forecast period 2026-2034. Key growth drivers include the rising adoption of renewable energy sources, technological advancements such as smart meters and energy storage, and the increasing preference for sustainable energy among individuals and businesses.
Study Assumption Years
- Base Year: 2025
- Historical Year/Period: 2020-2025
- Forecast Year/Period: 2026-2034
Mexico Power Market Key Takeaways
- The current market size stood at 95.9 GW in 2025.
- The market is projected to grow at a CAGR of 3.26% over 2026-2034.
- The forecast period for this growth is from 2026 to 2034.
- Mexico is leveraging its considerable potential for solar, wind, geothermal, and hydroelectric power to diversify its energy mix and enhance sustainability.
- Government initiatives such as clean energy certificates and ambitious renewable energy goals are catalyzing investments in renewables.
- Technological innovations, including smart meters and energy storage, are improving grid efficiency and decentralizing energy production.
- Increasing environmental awareness is driving the demand for cleaner energy among consumers and businesses.
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Mexico Power Market Growth Factors
The increasing transition toward renewable energy sources is a key factor driving Mexico power market growth, as investments in cleaner and more sustainable power generation continue to rise.The country possesses significant potential in solar, wind, geothermal, and hydroelectric power generation, which is being actively developed to diversify the energy mix. Governmental support, such as issuing clean energy certificates and setting ambitious renewable targets, encourages substantial investments in these projects. Additionally, falling costs of sustainable technologies and rising environmental consciousness accelerate the shift away from fossil fuels, reducing Mexico's carbon footprint and strengthening the energy network.
Technological advancements play a crucial role in enhancing power generation and distribution efficiency in Mexico. The adoption of smart meters, energy storage systems, and digital management platforms optimizes grid control, reduces operational costs, and enables real-time data for better decision-making. Innovations facilitate a transition to decentralized energy systems, allowing distributed generation like rooftop solar installations. In 2024, Enphase Energy launched the IQ Battery 5P in Mexico, a modular home battery supporting clean energy transition by enabling homeowners to manage and track energy consumption effectively.
Increasing demand for cleaner energy from individuals and businesses is another significant growth factor. Rising environmental awareness is pushing consumers towards renewable sources like solar and wind. Businesses are aligning with sustainability goals by sourcing substantial renewable energy portions to fulfill corporate social responsibility and appeal to eco-conscious stakeholders. Notably, in 2024, Mexico City opened the world's largest solar power plant on the Central de Abasto market roofs, producing 18 MW and 25 GWh annually, enough to supply 10,000 households and cut CO2 emissions by 11,400 tons.
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Mexico Power Market Segmentation
IMARC Group categorizes the Mexico power market based on generation sources and regions:
Breakup by Generation:
- Thermal
- Hydro
- Renewable: Includes solar, wind, geothermal, and hydroelectric power. Efforts to tap these sources aim to diversify Mexico's energy mix and promote sustainability.
- Others
Breakup by Regions:
- Northern States
- Central States
- Southern States
Recent Developments & News
In January 2024, GE Vernova and Iberdrola Mexico launched the Topolobampo III power plant in Sinaloa, utilizing GE's H-class combined cycle technology. This plant produces 766 MW, enough to power over 1.6 million households, marking the first use of GE's 7HA.01 gas turbine technology in Mexico and supporting renewable energy expansion through reliable power generation.
In December 2023, Clir Renewables partnered with Grupo México to enhance operations at the El Retiro Parque Eólico (74 MW) and Fenicias (175 MW) wind farms. The collaboration aimed to provide better operational insights to support Grupo México’s renewable energy growth and meet rising clean energy demands in Mexico.
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Key Players
- Cubico Sustainable Investments
- Renantis Mexico
- Sowitec
- GE Vernova
- Iberdrola Mexico
- Clir Renewables
- Grupo México
If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.
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