In contrast to unpredictable renewable energy policies in the United States and the European Union, Mexico has emerged as a lightning rod for renewable energy investment. As renewable energy investors assess changing global opportunities, Mexico continues to offer numerous stable investment prospects. Mexico’s investment-grade credit rating provides potential investors one of the few high-grade investment environments in Latin America. Additionally, the sharp reduction in contracted large-scale renewable energy opportunities in the U.S. and Europe has catalyzed recent interest in Mexico.

THE OPPORTUNITY -

The Mexican economy has been bolstered by strong international demand for its commodities and a competitive labor force favored by numerous U.S. industries following a reevaluation of a low-cost production chain previously outsourced to China. As a result, continued economic growth has reenergized interest from foreign investors into Mexico’s power generation and transmission systems. Because the long-term relative stability of Mexico’s economy provides investors with safe, profitable power sector development opportunities, savvy political technocrats in the country are using the investment window to attract additional foreign investors and are taking advantage of downturns in other international renewable energy markets to thrust the Mexican renewable energy sector to the forefront of the global market.

Originally published in American Council On Renewable Energy (ACORE) - November 2014.