page_title: Solar power in Mexico
section_title: History
hierarchical_section_title: Solar power in Mexico / History
caption_attribution_description: English: Installed Capacity of total distributed clean energy in Mexico. The blue line represents current growth in capacity and the blue line are projections made by Mexico’s Special Program for Energy Transition.
context_page_description: Solar power in Mexico has the potential to produce vast amounts of energy. 70% of the country has an insolation of greater than 4.5 kWh/m²/day. Using 15% efficient photovoltaics, a square 25 km on each side in the state of Chihuahua or the Sonoran Desert could supply all of Mexico's electricity.
context_section_description: A law requiring 35% of electricity from renewable resources by 2024 and carbon emission reductions of 50% below 2000 levels by 2050 was introduced in 2012. 
  Combined with declining solar installation costs, it was estimated that the 2012 climate law would lead to 6 GW of solar capacity in Mexico by 2020. 
  At the Solar Power Mexico conference, it was said that PV electricity and solar thermal would comprise up to 5% of Mexico's energy by 2030 and up to 10% by 2050.
  The first long term energy auction was held in 2015 with a second one in 2016. Solar PV was successful in both, securing 1,691 MW of the 2,085 MW auctioned in the first and 1573 MW of 3473 MW in the second auction.
  In 2013, 22% of the installed electricity generation capacity in Mexico was from renewable sources. 
  The majority, 18.1% coming from hydroelectricity, 2.5% from wind power and 0.1% from solar PV. 
  In December 2013, the Mexican government passed a Constitutional Reform that effectively opened the energy sector to private investment, both for electricity generation and petroleum exploration and extraction. 
  The Reform’s goal was to modernize the sector by optimizing the use of national resources and incentivizing renewable energy through clean energy certificates. 
  The Reform liberalized the electricity sector and brought forth a wholesale electricity market. 
  Long and medium term auctions are the main mechanisms used to incentivize capacity and energy growth. Clean energy certificates are created by the participation of renewables and are meant to support energy generated from low carbon emitting sources. A long term energy action secures a 15 year contract for energy and capacity supplied whereas medium term generates a 3 year contract.
  Mexico was the second largest solar generator in Latin America in 2016, with 180 MW installed capacity and more than 500 MW under construction. 
  At a clean source auction that year, solar won 1,860 MW at an average price of $50.7 per MWh (ranging between $35 and $67). 
  The production was expected to be 4 TWh per year. 
  Other sources such as gas, hydro and geothermal received no awards, and wind power won a smaller share than solar.
  As of 2017, thanks to the Long-Term Energy Auctions, solar PV energy is expected to increase to 6% in 2018 and 13% for 2019.
caption: Installed Capacity of total distributed clean energy in Mexico. The blue line represents current growth in capacity and the green line are projections made by Mexico’s Special Program for Energy Transition. Source: SENER, First Analysis on Clean Distributed Energy and Energy Efficiency in Mexico, 2017 (p. 7)
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