Mexico Power Market Size and Growth Overview (2025-2033)

Market Size in 2024: 92.7 GW

Market Forecast in 2033: 125.0 GW

Market Growth Rate 2025-2033: 3.4%

According to the latest report by IMARC Group, the size of the electricity market in Mexico reached 92.7 GW in 2024. Looking ahead, the market is expected to reach 125.0 GW by 2033, exhibiting a compound annual growth rate (CAGR) of 3.4% during the period 2025-2033.  

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How AI is Reshaping the Future of the Mexico Power Market?

Artificial intelligence is revolutionizing Mexico's power sector by introducing unprecedented levels of efficiency and predictive capabilities across the entire energy value chain. AI-powered smart grid management systems are enabling real-time monitoring and optimization of electricity distribution, significantly reducing transmission losses and improving grid stability. Machine learning algorithms are being deployed to predict energy demand patterns with remarkable accuracy, allowing utilities to balance supply and demand more effectively while integrating variable renewable energy sources like solar and wind power seamlessly into the grid.

Advanced AI applications are transforming renewable energy forecasting, with neural networks analyzing weather patterns, historical data, and real-time conditions to predict solar and wind energy generation hours or even days in advance. This capability is crucial for Mexico's ambitious renewable energy targets, as it allows grid operators to plan backup power requirements and storage deployment more efficiently. AI-driven predictive maintenance systems are also reducing downtime and operational costs by identifying potential equipment failures before they occur, extending the lifespan of critical infrastructure while ensuring a continuous power supply.

Furthermore, AI is empowering consumers through intelligent energy management systems that optimize household and industrial energy consumption based on pricing, usage patterns, and grid conditions. Smart meters equipped with AI algorithms are facilitating dynamic pricing models and demand response programs, incentivizing users to shift consumption to off-peak hours. This democratization of energy management, combined with AI-enhanced battery storage optimization, is accelerating Mexico's transition toward a decentralized, resilient, and sustainable power ecosystem that benefits both utilities and end-users while supporting the country's environmental objectives.

Mexico Power Market Trends & Drivers

The Mexico power market is experiencing a significant transformation driven by the country's strategic shift toward renewable energy sources and sustainability goals. The government's commitment to clean energy certificates and ambitious renewable energy targets is catalyzing substantial investments in solar, wind, geothermal, and hydroelectric projects across the nation. Mexico's considerable natural resource potential for renewable generation, combined with declining costs of clean energy technologies and growing environmental awareness, is accelerating the departure from fossil fuel dependency. This transition is particularly evident in landmark projects such as Cubico Sustainable Investments' expansion to over 2.2 GW capacity through strategic acquisitions and partnerships, including the addition of more than 1.6 GW in development projects spanning multiple states. The deployment of advanced technologies, including smart meters, energy storage systems, and digital management platforms, is enhancing operational efficiency, grid reliability, and real-time decision-making capabilities while facilitating the integration of distributed generation solutions like rooftop solar panels.

Consumer behavior and corporate responsibility are emerging as powerful market drivers, with both individuals and businesses increasingly demanding cleaner and more sustainable energy options. Rising environmental consciousness is prompting consumers to actively choose renewable energy sources over traditional fossil fuels, while corporations are establishing sustainability targets that include procuring significant portions of their energy from renewable sources to fulfill corporate social responsibility commitments and appeal to environmentally conscious stakeholders. The inauguration of Mexico City's massive 18-megawatt rooftop solar installation at Central de Abasto market—the world's largest of its kind—exemplifies this trend, demonstrating the scalability of urban renewable energy projects. This facility, equipped with 32,000 solar panels and projected to generate 25 GWh annually while reducing CO₂ emissions by 11,400 tons, represents the growing intersection of sustainability objectives and practical energy solutions that are reshaping Mexico's power landscape and driving market expansion.

Mexico Power Industry Segmentation

The report has segmented the industry into the following categories:

Breakup by Generation Sources:

• Thermal
• Hydro
• Renewable
• Others

Breakup by Region:

• Northern States
• Central States
• Southern States

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Competitive Landscape:

The market research report offers an in-depth analysis of the competitive landscape, covering market structure, key player positioning, top winning strategies, a competitive dashboard, and a company evaluation quadrant. Additionally, detailed profiles of all major companies are included.

Recent News and Developments in Mexico Power Market

• January 2024: GE Vernova and Iberdrola México inaugurated the Topolobampo III power plant in Sinaloa, which utilizes GE's Class H combined-cycle technology and produces 766 MW, enough to power more than 1.6 million homes. This project represents the initial deployment of GE's 7HA.01 gas turbine technology in Mexico, with the goal of contributing to the expansion of renewable energy by providing reliable and adaptable power generation.
• December 2023: Clir Renewables announced a collaboration with Grupo México to improve operations at the El Retiro Wind Farm (74 MW) and Fenicias Wind Farm (175 MW) in Mexico. The goal of this collaboration is to provide Grupo México with better information and transparency to support its growth in renewable energy and meet the increasing demand for clean energy in Mexico.

Future Outlook

The Mexico power market is poised for robust growth through 2033, driven by the country's unwavering commitment to renewable energy expansion and grid modernization. The integration of advanced technologies, including AI-powered grid management and energy storage solutions, combined with supportive governmental policies and increasing private sector investments, will accelerate the transition toward a more sustainable and resilient energy infrastructure. Growing consumer demand for clean energy options and the continued decline in renewable technology costs will further strengthen market dynamics, positioning Mexico as a regional leader in clean energy adoption while creating opportunities for innovation across generation, distribution, and consumption segments.

Key highlights of the Report:

• Market Performance (2019-2024)
• Market Outlook (2025-2033)
• COVID-19 Impact on the Market
• Porter's Five Forces Analysis
• Strategic Recommendations
• Historical, Current and Future Market Trends
• Market Drivers and Success Factors
• SWOT Analysis
• Structure of the Market
• Value Chain Analysis
• Comprehensive Mapping of the Competitive Landscape

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

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