Companies in Mexico need more electricity – level 3

15-09-2023 15:00

Industrial parks and warehouse operators in Mexico, desperate for electricity to power their booming operations, are offering to pay out of their own pockets to build solar panels.

However, this threatens government control of energy markets. On top of a strained national grid, electricity demand is only expected to grow as big companies like Tesla and others set up operations amid a trend known as nearshoring, especially in the country’s north.

Mexico caps self-generated renewable energy at 500 kilowatts in what’s called distributed generation. Industrial Parks Association is asking the government to expand that limit, one of the workarounds to boost much-needed capacity. As the world slowly moves away from fossil fuels, President Andres Manuel Lopez Obrador has increased the country’s reliance on them at the expense of private sector-led renewable projects.

Difficult words: strained (stressed or overloaded), nearshoring (transferring a business operation to a nearby country), workaround (a method of overcoming a problem).

You can watch the video news lower on this page.

How will the self-generated renewable energy cap affect industrial and warehouse operators in Mexico?


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