Renewable energy in Mexico contributes to 26 percent of electricity generation in Mexico. As of 2009, electricity generation from renewable energy comes from biomass, hydro power, geothermal, solar power and wind. There is a long term effort established to increase the use of renewable energy sources. The amount of geothermal energy used and harvested, places Mexico as number four in the world.
History of renewable energy in Mexico In May 2020 President Andrés Manuel López Obrador canceled solar and wind energy contracts to supply electrical power for the government, citing high costs for consumers while oil prices were low and citizens were suffering from high unemployment due to the COVID-19 pandemic. Environmentalists and investors have both criticized the move. The President defended his actions by citing high profits, high costs, and corruption related to the contracts, and he insisted he was not anti-renewable energy.
Current policies: protocols and initiatives
A great deal of new and innovative techniques and ideas have been implemented globally as countries on an international context gain momentum in the realms of green energy. Mexico specifically gained major momentum for this shortly after the Rio Conference in 1992. The Rio Conference is also known as the Earth Summit. It is a rapidly growing conference, especially within the last 20 years. It was located in Brazil and included 172 number of government participants. 108 of these are at a head of state or government level. The Earth Summits goal is to transform the attitudes and minds of people, into a more global change focus for the future preservation of the world. One of the first major changes for renewable energy was that Mexico's public electricity service law was revised. The revision allowed the participation of private entities within the process of electricity generation. This change impacted “self-supply of electricity, co-generation (production of electricity from waste heat for self-supply), small electricity production (under 30 MW for sale to the national electric utility CFE), and independent power production for exclusive sale to CFE” as according to the International Energy Agency. In the past a total number of 4000 MN in permits have been awarded by Energy Regulatory Commission. These permits included bio-gas to electricity, small hydro, solar and wind farms. Furthermore, a grid connection contract for renewable energy was created in 2001. This in essence was a set of rules on detailing transmission charges relating to the transmitting or feeding in to the national grid. This change impacted solar, wind and small hydroelectric installations. It allowed for the grid to hold the amount of clean green energy to generate enough power to source energy during peak local times. Another implementation from Mexico's past was motion to establish service charges for the transmission of renewable electricity in 2003. This in essence was an issue to require the owners of transmissions to connect the generators under the same standard set of requirements and conditions. Which allowed for a standardized process and timeline for interconnecting them. More recently ratification of the IRENA Statue, a National Energy strategy was created throughout 2011/2012. This was joining the International Renewable Energy Agency and Mexico's own Ministry of Energy, where a collective agreement was to reduce coal demand by 62% and aim to generate 46% of total energy needed through renewable sources. While some of these are more within the last two decades, they are the laws and regulations that have formed Mexico's renewable energy to what it is today. These changes allowed Mexico to rank number four globally for renewable energy. In 2025, Mexico required that new solar and wind facilities must include 30% batteries, equivalent to 3 hours of power production.
Sources of renewable energy in Mexico The main forms of renewable energy used in Mexico are hydropower, biomass, geothermal, solar power and wind. While all of these are assisting in lowering the fossil fuel count and carbon emissions. Mexico announced in July 2026 a $42.3 billion plan to add 32,000 megawatts of electricity to its grid by 2030. Of that total, 22,000 megawatts will come from solar, wind and geothermal. Hydropower
Firstly, hydropower. Hydropower is often also referred to as hydro energy. This is the process of receiving energy, by storing water in dams and from flowing rivers. It is mentioned first before other sources as it is the most prominent in Mexico. It provides a power capacity of 11,603 MW. This course of action is more prominent in developing countries rich in water sources. While the source does contribute a lot to total energy produced, it is rapidly growing as a form of renewable energy. Geothermal Geothermal energy uses the Earth's core heat as a form of energy. It can be generated from hot water to the molten rock miles beneath the surface of the Earth. Geothermal is the second most common and used sources in Mexico. It contributed nearly 958 MW towards Mexico's renewable energy. Geothermal contributes to 9.3% of the total global renewable energy.
Solar power Solar power is usually the most commonly heard and associated when one hears the term “renewable energy”. It is generated by the heat produced from the Sun, absorbed through solar panels, and transferred directly to renewable green energy. This is considered the most efficient and convenient for Mexico. This is because it is located directly on the global solar belt. In addition, Mexico has a large landmass, meaning solar panels could be constructed and covering many of the open spaces.
Wind power
Wind energy, is the process of converting the naturally occurring wind into energy. This can be done through the use of wind turbines. In Mexico it is concentrated within five major regions. This allows for funding and manpower to be allocated to the most efficient positions within the country. Biomass Lastly the most common form of renewable energy in Mexico is biomass. Biomass is the fuel developed from organic materials. Due to the fact that this is the most common form, the most energy and time has been invested in it. Investments are mainly done with research and publications. This is considered a primary source, although it has had a steady decline as the other forms of renewable energy become more used and researched.
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