Like many countries in South America Mexico is working on it’s infrastructure to provide electricity for the growing demands of the coming decade. At the moment many parts of South America are suffering from shortages and gaps in electricity. We have a feeling that things will soon be changing.
According to the smart grid forecast from Zypryme, Mexico is forecast to grow its smart grid technology by 25 percent annually.
Smart grid technology provides an unprecedented opportunity for Mexico to improve both functionally and economically.
Zpryme’s research indicates that Mexico’s smart grid technology market will grow from $1.23 billion in 2012 to $7.42 billion in 2020. A projected annual growth rate (CAGR) of 25%.
Unfortunately at the moment the electricity market in Mexico is federally owned, with the Federal Electricity Commission, pretty much controlling the whole sector.
We hope that in the future more participation will come from private power generation in Mexico as this is done on a self-supply basis, where these players can only generate electricity for their own consumption, and can only sell excess electricity back to CFE. As modernization advances, private power producers will have new opportunities, thus bringing more secondary buyers into the market for smart grid technologies.
We think that all these positive electrical opportunities for Mexico will drive business to the area, creating more growth and jobs.