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Mexico power rates must rise to spur solar growth-SunPower CEO

Apr 4, 2016 Solar energy company SunPower recently made public its plan to invest in Mexico’s energy sector.

With Mexico transiting to cheaper natural gas, the reform promises to add new sources of private generation with the development of a new wholesale electricity market.

Speaking during an interview, the chief executive of SunPower Corp, Tom Werner, said that the industrial power rates in Mexico will need to rise by as much as 20 percent to achieve significant future growth in solar electricity generation.

Mexico power rates must rise to spur solar growth-SunPower CEO

“You’re going to see the commercial and industrial sector move pretty quickly already, but if you saw up to the numbers you gave, up to 20%, that would make a huge difference,”

As of 2014, Mexico’s solar power capacity stood at just 64 MW according to the International Energy Agency.

However, with Mexico completing its first long-term clean energy power auction, seven companies including SunPower have won rights to build 1,720 megawatts of new capacity.

We also expect our research and development investment to increase and bringing in suppliers because the scale has increased to the point where it makes sense for suppliers to co-locate and as a co-locate costs come down and then perhaps we become an export hub. First things first, grow, bring in some suppliers and then perhaps an export hub.”

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