Mexico to Lead Central American, Caribbean Wind Power Growth

A new report has revealed that more than 9.5 gigawatts (GW) of new wind power capacity will be commissioned in Central America and the Caribbean through 2028, driven by central planning authorities in smaller markets and the attractive value proposition of the technology in Mexico. The latest Mexico, Central America and Caribbean Wind Power Outlook report by Wood Mackenzie found that Mexico will lead the region in new capacity, accounting for more than 75% of the anticipated growth. The country is expected to commission nearly 1.7 GW in 2019, and up to 7.2 GW of new wind capacity by 2028. The report noted that following the controversial cancellation of highly competitive long-term power auctions, wind power development in the country will be supported primarily through 2028 by commercial and industrial (C&I) power purchase agreements (PPAs), signed at favourable discounts to state utility CFE tariffs. Brian Gaylord, Principal Analyst, Latin America & Southern Europe, said, “We still see strong demand for new wind power capacity additions in Mexico over the coming decade. The country possesses a strong wind power resource which will support the development of new projects with competitive electricity pricing.

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