Market Research Report
Mexico Smart Grid and Smart Cities: Market Forecast (2018 - 2027)
|Published by||Northeast Group, LLC||Product code||289196|
|Published||Content info||116 Pages + Excel Dataset
Delivery time: 1-2 business days
|Mexico Smart Grid and Smart Cities: Market Forecast (2018 - 2027)|
|Published: July 23, 2018||Content info: 116 Pages + Excel Dataset||
Mexico is steadily progressing in developing one of the largest smart grid infrastructure and smart cities markets in both Latin America and among all emerging market countries. Since the third volume of this study was published back in 2015, Mexico has institutionalized smart grid regulations and significantly increased its near-term smart metering plans. The country is also progressing with largescale deployments of LED street lighting and is in the early stages of smart, or connected, street lighting.
Mexico's smart grid development is driven by both regulatory incentives and business case benefits. Overall transmission and distribution (T&D) losses and electricity consumption rates are average for emerging markets. However, in some cities nontechnical loss rates are among the highest in the world and in other areas average electricity consumption rivals levels seen in developed countries. Slumping energy supplies and high carbon emissions have vaulted energy reform to the top of the political agenda. Recent reforms have expanded the number of small-scale generators in the electricity market, meaning that Mexico will need a more flexible and resilient grid.
The transmission and distribution segments remain entirely controlled by a single state-owned utility (CFE), and ultimately CFE and the regulator CRE will dictate the pace and scale of smart grid deployments in Mexico. All relevant smart grid regulations have been developed under outgoing President Peña Nieto and there is some risk with a new administration taking office in December 2018. President-elect López Obrador has been critical of many recent energy reforms - reforms that have been critical in driving smart grid development. But the overall goals of smart grid infrastructure align with the new administration's interests and changes are not expected. Increased appetite for infrastructure investment could also lead to financing for more ambitious smart city projects, which are only just getting started in the country.
Until recently, Mexico's smart grid plans were mostly only that - roadmaps, plans, and pilots. Deployment is now well underway, and while details of a national rollout have failed to emerge, investment plans have been increased in recent years, setting the stage for large-scale investment in the 2020s. By 2027, CFE will have deployed smart meters to over 50% of its customers and added large-scale investments in distribution automation, wide area measurement, home energy management, information technology, and battery storage.