One of the best renewable energy options for Mexico could be wind energy, especially since the latest estimates say that a total of 40,000 MW of wind energy potential could be developed in Mexico. At this moment Mexico has around 200 MW of installed wind power capacity which means that wind energy still trails behind other more traditional renewable energy sources such as hydropower and geothermal power.
However there looks to be a strong interest for further development of wind energy sector in Mexico, and more than 560 MW of wind turbines projects are currently under construction.
The good news not only for wind energy but also for other renewable energy sources in Mexico is the new legislation that supports new renewable energy projects by offering financial incentives, and Mexico also introduced various bodies with a task to create adequate renewable energy strategies.
Many energy experts will likely tell you that the best thing that Mexico has so far done to develop strong renewable energy sector is the Renewable Energy Fund. Renewable Energy Fund should promote the use of renewable energy sources by providing financing guarantees and direct support. In order to achieve this purpose three billion pesos (220 million US$) have been allocated on an annual basis from 2009 to 2011.
However this does not mean that wind energy development will have an easy time in Mexico because of various problems such as insufficient transmission infrastructure, unclear rules for the Renewable Energy Fund, weak judicial system, problems with long-term land leasing, etc.
This means that federal and state governments still have a lot of work ahead of them to attract more investment and turn wind energy into one of the most significant energy sources in Mexico.