SkyPower, Grupo Uribe form joint venture to develop clean energy in Mexico

Solar project developer SkyPower and Mexican energy company Grupo Uribe have formed a joint venture aimed at developing an integrated pipeline of utility-scale solar photovoltaic projects across Mexico.

Mexico, one of the fastest growing economies in the Americas, aims to increase the share of renewable energy in its energy mix.

Mexico was one of the first developing countries to announce target for reduction of greenhouse gas emissions by 2030. In April, the country watered down its clean energy target to 5 percent electricity from renewable energy sources by 2018.

Originally, the country had proposed target of 8.2 percent in its draft policy published in March. The target was part of the national energy plan of the country.

Reports suggested that the revised targets weren’t adequate to get the country to its medium term target of 24 percent of renewable energy by 2024.

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In 2011, renewable energy sources had contributed about 7 percent to the total energy production in Mexico. Among renewable energy sources, biomass led the pack with nearly 4 percent of energy, which was equivalent of burning 219.5 million tons of oil for energy production.

Hydropower and geothermal projects provided about 1.5 percent each while solar and wind energy projects contributed less than 0.15 percent combined.

But the contribution of renewable energy sources including wind and solar is expected to increase significantly as leading developers such as Gamesa and Pattern Energy have shown interest in Mexico.

Recently, Pattern Energy signed an agreement with Mexican construction company Cemex to develop 1 GW renewable energy capacity over the next 5 years.

Ajith Kumar S