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19 December 2008

Mexico's renewable energy sector has consistently underperformed the country's resource potential. Will a new law deal with Mexico's legal and structural obstacles to project development? By J. Anthony Girolami, Chadbourne & Parke

Mexico recently enacted a Renewable Energy Law that provides welcomes changes to a legal framework designed to promote economically viable renewable power. This article provides an overview of the types of renewable resources currently existing in México, the difficulties in implementing renewable energy projects, the Law and its potential impact on the Mexican renewable power industry.

Mexico possesses large untapped renewable energy resources. Studies have determined that Mexico has national wind resources sufficient to generate in excess of 40,000MW. The wind conditions in the State of Oaxaca are among the best in the world and have the potential to generate 8,800MW. Baja California, Yucatan and Quintana Roo benefit from wind conditions that could potentially generate 274MW, 352MW and 157MW, respectively.

With respect to solar resources, the desert regions of northern Mexico have one of the highest potentials in the world, with an average solar radiation coverage of 5kW...

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