The government of Claudia Sheinbaum has initiated a plan to promote renewable energies in Mexico, launching an International Public Tender (LPI) aimed at increasing the participation of geothermal energy in the country's electricity generation matrix.
The international tender (LE-18-T0K-018T0K001-I-125-2024) seeks to hire a provider of exploratory geothermal well drilling services, with a mobilization of 51.5 million dollars coming from a contingent donation from the Clean Technology Fund (CTF) that will be activated in case drilling is unsuccessful.
In this tender, the drilling of four geothermal wells is planned, three in Cerro Prieto, Baja California, and one in Las Tres Vírgenes, Baja California Sur, according to the Risk Financing and Transfer Program for Geothermal Energy. The Inter-American Development Bank (IDB) will support the tender in collaboration with the Secretariat of Energy (SENER), Nacional Financiera (NAFIN), and the National Institute of Electricity and Clean Energies (INEEL).
As of 2023, the installed capacity of geothermal technology reached 976 MW, representing only 3.4% of the installed renewable energy in Mexico, according to the Program for the Development of the National Electric System (PRODESEN) 2024-2038. In contrast, the installed hydroelectric capacity accounts for 44.2%, followed by photovoltaic (26.2%), wind (24.7%), geothermal (3.4%), and bioenergy (1.4%).
The president of Mexico, Claudia Sheinbaum, has expressed her goal that 45% of the electricity generated in the country comes from renewable sources by 2030. However, the report "Renewable Energies 2024" from the International Energy Agency (IEA) projects that the participation of renewable energies in Mexican electricity generation will only increase to 26% by 2030, up from the 18.5% observed in 2023.
The IEA identifies the slowness in the approval processes for permits and the lack of a federal policy for the acquisition of renewable energy as obstacles to the growth of renewable capacity in Mexico, noting that the country could add more renewable energy if permits are expedited or if the Federal Electricity Commission (CFE) starts additional projects.
