As Mexico stalls major solar projects, companies turn to smaller workarounds

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With alternative energy projects stalled in Mexico due to controversial energy reforms, companies are increasingly turning to smaller-scale renewable options that allow businesses to cut carbon emissions.

, are currently stalled as they await permitting from the state power regulator, according to Valentina Izquierdo, a Mexico-based solar analyst for Wood Mackenzie.Carlos Bautista, a renewable energy engineer at Mexican solar company Enlight shows areas of an installed solar panel project at a client's company in Mexico state, Mexico August 19, 2022.

Enlight, a Mexican solar company that focuses on DG projects for industrial customers, said it had clients that considered tapping renewable energy from larger sources, but the political climate swayed them to DG as a more proactive step towards their own ESG commitments. Sector experts have estimated DG investments in Mexico have topped $3.5 billion in the last eight years, with another $500 million expected by the end of this year.

Mexico's most recent electricity development plan, for 2022 through 2036, delays by seven years the country's previous commitment to generate 35% of its energy from renewable sources by 2024. It now says that will only be possible by 2031.

 

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