Mexico’s Smart Grid Expected to Show Significant Growth

A new study concludes that the smart grid market in Mexico—including advanced metering infrastructure, distribution automation, home energy management, wide area measurement and information technology projects—will cumulatively increase to $12.1 billion with annual spending reaching $2.1 billion 2023.

According to the Northeast Group, “Mexico is steadily progressing in developing one of the largest smart grid markets in both Latin America and among all emerging market countries. Since the first volume of this study was published in 2011, Mexico has nearly doubled the number of AMI meters deployed while beginning to establish clear roadmaps and deployment targets. Overall investment to–date has been limited, but is slated to pick up significantly in the later part of this decade. This will provide American smart grid vendors, international players, and domestic Mexican firms with numerous opportunities to expand in the country.”

Currently in Latin America, Mexico trails Brazil in smart grid potential. But it is expected that Mexico will deploy more than 21 million smart meters by the end of the decade. As a region, Latin America is expected to have approximately 126 million meters installed by 2020.

According to the Northeast Group, “Mexico will also benefit from a single, state-owned utility that ensures a streamlined regulatory framework and efficient deployment. Much like ENEL’s pioneering smart meter deployment in Italy, CFE can ensure that smart grid deployments are quickly rolled out to all parts of the country.”

Northeast Group president Ben Gardner adds: Mexico has all of the key characteristics to develop into a robust smart grid market. Its government is working on developing a concrete regulatory framework and political leaders are looking to reduce electricity prices and incorporate small-scale generators. Smart grid infrastructure will be necessary to enable these changes. Above average distribution losses and electricity consumption rates mean that there is already a strong business case for smart meter deployments in Mexico, with other smart grid market segments to follow.”

Tags: ,

No comments yet.

Leave a Reply

You must be logged in to post a comment.