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Mexico’s Energy Crossroads: Can Sunshine Power the Future?

By Raveen Singh

How does Mexico keep the lights on? Unlike Canada, which generates most of its electricity from clean, renewable hydro power, Mexico relies heavily on fossil fuels. Hydroelectric opportunities are limited by topography, rainfall, and geography. As a result, natural gas has become Mexico’s workhorse — providing about 59% of the country’s electricity between August 2024 and July 2025.

Renewable sources — hydropower, solar, and wind — now supply roughly a quarter of Mexico’s power. While progress has slowed in recent years, the potential for alternate, cleaner, more secure energy remains enormous.

Where Mexico Gets Its Power

The Federal Electricity Commission (CFE), the state-owned utility, still dominates the sector. It is the only electricity provider for small and medium consumers and is legally required to maintain 54% of national power generation. Its mandate is to ensure stability in the National Electric System, but this dominance has made it difficult for private or foreign investors to enter the market.

Mexico’s National Electric System Development Program sets a bold goal: 50% clean energy by 2050. The vision is ambitious — the country’s geography offers abundant sunshine and strong winds — but the reality is more complicated. Recent policy shifts have favored fossil fuel expansion and reduced incentives for renewables. This has caused a slowdown in new solar and wind projects and concern among investors watching Mexico’s energy transition stall.

Hydropower: Limited by Landscape and Public Opinion

Hydropower may be clean and inexpensive once built, but it requires very specific conditions: a combination of terrain, consistent rainfall, and suitable geological foundations, work together for a viable project. Mexico’s geography and climate offer limited opportunities for such large-scale projects. Even where feasible, public opposition often arises over the flooding of valleys and the displacement of communities, not to mention historical land ownership issues that are prevalent.

Large dams also take years — sometimes decades — to plan and fund. A good example of how megaprojects can attract political interference and public distrust is seen with Canada’s SNC-Lavalin corruption scandals in the early 2000s.

Smaller “mini-hydro” installations have been developed across Latin America to minimize environmental impact, but they come at higher costs. Polaris Renewable Energy Ltd., a publicly-traded Canadian company operating in the region, shifted its focus toward solar after finding hydropower and wind developments slow and bureaucratic, as well as expensive and with a higher environmental disruption. As their executives put it, solar projects are simply faster, cheaper, and easier to deliver.

Wind Power: Promise in the Isthmus

Mexico’s southern Isthmus of Tehuantepec is among the windiest corridors in the Americas, making it the natural home for wind generation. The country currently has 87 onshore plants producing 8.67 GWh, with another 13 projects under construction. Yet few new ones are planned or approved.

The challenges are both technical and financial. Wind farms must be designed to withstand hurricanes and tropical storms — risks that drive up insurance and construction costs. Irregular wind patterns mean projects require storage or backup generation. Battery technology is improving but remains expensive and imperfect. And as climate change increases the unpredictability of weather patterns, long-term investors grow cautious.

For now, Mexico’s wind sector remains viable but uncertain — full of potential, short on momentum.

Solar Energy: The Bright Side

The clear winner in Mexico’s renewable race is solar power. With 85% of the country enjoying ideal conditions, sunlight is Mexico’s most abundant resource. Solar energy has expanded dramatically, from just 0.18 GW of installed capacity in 2016 to nearly 12 GW by 2024 — supplying 7.6% of national electricity.

Massive facilities such as the Villanueva Solar Plant in Coahuila (754 MW) and the Puerto Libertad complex in Sonora (405 MW) have positioned Mexico among the world’s leading solar power producing nations. If expanded strategically, solar power could meet more than half of the country’s energy demand within the next decade.

The benefits are obvious: reduced dependence on imported natural gas, lower emissions, and greater energy security.

The Obstacles to Going Solar

So, what’s holding Mexico back?
Despite its potential, building solar farms in Mexico costs more than the global average. Financing is expensive, supply chains are underdeveloped, and grid infrastructure is aging. Much of the national transmission system lacks redundancy, meaning a single failure can leave entire regions without power — as the two-day blackout across Yucatán and Quintana Roo in September 2025 demonstrated.

Solar power also requires major investment in energy storage to balance generation during cloudy days or nighttime hours. Without large-scale batteries and modernized transmission, much of Mexico’s sunshine will remain untapped potential.

Another challenge is policy. While the 2013 constitutional reform opened the energy sector to private and foreign investment, subsequent administrations have reasserted state control. This has made Mexico less attractive to international investors, even as global capital for renewables has surged elsewhere in Latin America.

Acciona: A Case Study in Renewable Investment

Spanish contractor Acciona Energía has been one of the most active foreign developers in Mexico, operating both wind and solar projects and building transmission infrastructure for the CFE. The company’s portfolio includes the 183-MW El Cortijo and 138-MW Santa Cruz wind farms in Tamaulipas, four wind projects in Oaxaca totaling over 550 MW, and the 405-MW Puerto Libertad solar complex in Sonora.

Acciona has also supported rural electrification through its non-profit arm, acciona.org, providing solar power to remote communities in Oaxaca and San Luis Potosí.

Yet even Acciona has signaled uncertainty. In August 2025, it announced a review of its entire Mexican portfolio as part of an “asset rotation process,” citing a tougher business environment. For Mexico — once considered a regional renewable leader — this retreat is a worrying sign.

The Road Ahead

Mexico has pledged to reach 45% clean energy by 2030 and 50% by 2050. Achieving that will require streamlined permitting, modernized transmission lines, and predictable policy to attract both domestic and international investment.

Experts agree the sun offers Mexico its brightest opportunity. But technology alone isn’t enough — political will must align with the nation’s natural advantages. A modern, reliable grid could make Mexico a continental powerhouse of clean energy.

Until then, the country stands at an energy crossroads: one road leading deeper into fossil fuel dependence, and another toward a self-sustaining, solar-powered future.

Acciona’s Renewable Projects in Mexico
Owned Wind Farms
· El Cortijo (Tamaulipas) – 183 MW, commissioned 2018
· Santa Cruz (Tamaulipas) – 138.6 MW, commissioned 2020
· Oaxaca Complex – Four farms totaling 556.5 MW
Wind Farms Built for Clients
· Ventika Complex (Nuevo León) – 252 MW
· Mesa La Paz (Tamaulipas) – 306 MW
Solar Projects
· Puerto Libertad (Sonora) – 405 MWp, joint venture with Tuto Energy
· Supreme Court Building (CDMX) – 1,000 m² of PV panels providing 12% of power
Transmission Projects for CFE
· Empalme II Grid (Sonora/Sinaloa) – 117 km
· Topolobampo III Lines (Sinaloa) – two lines and two substations
Rural Electrification
· acciona.org projects bringing solar home systems to low-income households in Oaxaca and San Luis Potosí

How Food Inspired Colonialism in the 15th Century

By Raveen Singh

It’s amazing to think that the spices sitting quietly in our kitchens today were once rare treasures. Coriander, oregano, or even sea salt — things we take for granted — were, centuries ago, expensive luxuries. They were used as currency, to pay taxes, and even as dowries. They triggered piracy, battles, wars, and ultimately centuries of European colonialism and conquest — along with slavery, exploitation, and the destruction of entire societies.

Here’s how the craving for flavor reshaped the world.

Before the Rise of the Ottoman Empire

Before the 13th century, the world was broadly divided into East and West. The Far East — today’s India, Southeast Asia, and China — was separated from Europe by the Middle East. When the Roman Empire collapsed around 500 CE, Europe fragmented into feudal states, a period often called the Dark Ages.

Yet Rome had left behind one lasting habit: a taste for luxuries from the East. Silk, tea, and, above all, spices continued to flow westward along the Silk Road. Overland routes passed through Persia, Iraq, and Turkey before reaching Mediterranean traders. Arab merchants controlled the trade, selling Chinese silk, Indian spices, precious metals, and even horses at enormous markups.

Spices were so valuable they were treated like money. A pound of saffron could cost as much as a horse. In 1393, nutmeg was valued at seven fat oxen. Peppercorns were used to pay taxes and tolls; towns kept their accounts in pepper. Brides received pepper in their dowries. Charlemagne even ordered farmers to grow herbs like fennel, sage, thyme, and coriander.

The Silk Road carried more than goods — it spread religions, art, technology, and ideas. By the 13th century, explorers like Marco Polo described the spice-rich lands of Java, India’s Malabar Coast, and the South China Sea, fueling Europe’s hunger for direct access.

The Ottoman Roadblock

When Constantinople fell to the Ottomans in 1453, everything changed. The empire imposed heavy tariffs on goods passing through its lands. Maritime choke points like the Eastern Mediterranean and the Suez were also under Ottoman control. For Christian Europe, spices became harder and costlier to obtain.The solution?

Find another route.

Portugal’s Push Around Africa

Portugal led the way. In 1488, Bartolomeu Dias sailed around the Cape of Good Hope, proving the Atlantic and Indian Oceans were connected. Vasco da Gama reached India a decade later, opening the door to a direct maritime spice route.

The Portuguese established forts and outposts along Africa and into Asia, powered by advances in navigation and shipbuilding. By the mid-1500s, Lisbon had become a hub for Asian spices, its empire stretching all the way to Nagasaki.

Spain’s New World Accident

Spain, emerging from the Reconquista in 1492, turned to exploration as well. That same year, Christopher Columbus — sailing west in search of Asia — stumbled instead on the Americas. The 1494 Treaty of Tordesillas divided the world between Spain and Portugal, with Spain claiming the western lands and Portugal much of the east.

Soon after, Hernán Cortés conquered the Aztecs, seizing gold and introducing Europe to new flavors like vanilla. Spanish conquests spread rapidly across the Americas, shifting focus from trade to colonization.

A Naval Race for Flavor

By the 16th century, five powers — Spain, Portugal, Britain, France, and the Netherlands — were racing to control trade routes. All relied on naval supremacy. For about 150 years, the Americas consumed much of their attention, but the spice trade remained the golden prize.

Portugal grew rich, but by the late 1500s, its overstretched empire came under attack from the Dutch, British, and French. Spain, flush with silver and gold from the New World, shifted its energy westward.

What tied them all together was the same obsession: the pursuit of flavor.

The Global Consequences

What began as a quest for pepper, cloves, cinnamon, and nutmeg reshaped the globe. European empires carved up territories, enslaved millions, and wiped out entire societies in their hunger for spices, silk, tea, and gold.

Seen this way, the Age of Exploration wasn’t just about adventure or discovery. It was about dinner. The next time you grind pepper onto your steak, remember: wars were fought, empires rose and fell, and lives were lost for that tiny spice. The flavors we sprinkle casually today once carried the weight of empires — and their shadows still shape our world.

 

The Venice of the New World

By Raveen Singh

The year is 1325. According to a myth, a nomadic tribe moved into an area previously occupied by several other tribes, with the intent to settle. As such, a King of the existing tribe offers his daughter’s hand in marriage to the incoming nomads.

The Nomads, the Sacrifice, and the Lake

The nomadic tribe receives the young woman and prepares her for marriage in accordance with their customs. Then five men lead her to the top of a stone cairn, where a slab of rock awaits. They lay her down and hold her, one man per limb. The fifth man lifts a piece of obsidian over his head and plunges it into her heart, reaching in and ripping it out with his bare hands. Later that night, at a presentation for the King, they wore her glistening skin as they performed a ceremonial dance.

Once the King realized what had been done, he was clearly angered. Legend has it that he ordered the nomads to be destroyed, a chase ensued, and the nomads plunged themselves to safety in Lake Tenochtitlan. On an island in that lake, the nomads saw a vision: an eagle perched on a cactus eating a snake. This was a sign to the nomadic tribe to settle there; they called themselves the Mexica.

The Nomads Settle Down and Build

The Mexica, later called the Aztecs, were forced to adapt to their new inherited island in the middle of a large saline lake surrounded by four other freshwater lakes. To settle this area, found by chance but validated by their deity, would require feats of engineering far ahead of the times.

The lake beds comprise extremely soft soils, incapable of supporting heavy structures such as houses, roads, buildings, bridges, or most importantly, temples. The Aztecs somehow figured out how to drive piles into the muck, which contained fill to provide support for building a temple. Now known as the Templo Mayor, it was the central focal point of the new settlement.

Causeways. Initially, the only access to the area was via water and canoes. The Aztecs then required access to the mainland, so they placed fill into the soft lake beds. The fill would settle out of sight into the soft substrate, the Aztecs drove an array wood piles into the fill, and created the basis for building roads. Because all the construction materials were placed by human hands, as the Aztecs had no animals to help with the tasks, they made every effort to reduce the materials requiring transport. Eventually, using the fill-and-piling method, they constructed five causeways to link the mainland to the Templo Mayor.

The settlement, called Tenochtitlan, was centralized around the Templo Mayor, and the Aztecs realized that the obstacle that they had to surmount was also the very thing that provided them security – the lake itself.

Chinampas. As the settlement grew, they realized that their food supply required security against hostile invading tribes and the Aztecs eventually perfected the use of chinampas (floating gardens) as a means of ensuring a stable large-scale cultivated food supply. The chinampas were made of interwoven reeds with stakes beneath the surface of the water, creating underwater fences. Atop these mats, they added lake sediment mixed with aquatic vegetation until the top layer was above the surface. This type of construction would ensure that the crops would always have a water supply, requiring minimal maintenance.

Drainage, Dikes, and Canals. The Mexica also developed a multipurpose drainage system, which comprised a ditch for the flow of water and sediment (which likely included human waste) that would in turn be used in the development of new chinampas. Because of the biological diversity of the introduced sediment and the use of lake-bed sediments, the bacterial community was diverse, thus supporting virtually every type of crop. With these raised, well-watered beds, the crop yields were very high, permitting up to seven harvests per year. In 2018, the United Nations designated the chinampa system of agriculture a Globally Important Heritage System; it should be noted that it is still in use today.

Construction in a low-lying land such as a lake bed also required advanced techniques to control flooding. An area with impermeable soils and no drainage required a method of ensuring that water levels in the area of habitation were maintained. Dikes, canals and causeways were built as a means of flood control, including a 16-km long dike that held back a portion of Lake Texcoco to prevent seasonal flooding. The Aztecs also built a series of canals through the city to drain the swamplands, and earthen causeways that also served as pedestrian walkways. A series of locks, gates, and sluiceways were built into the system a means of controlling water levels, an engineering feat far ahead of its time.

Aqueducts. Water, the sustenance of life, was also initially a challenge to the Aztec. The waters of the lake at the location were saline and not sustainable for long-term use for humans. The Aztecs found a series of springs on the mainland, and developed an aqueduct to transmit this water to the island city. Initially, water was brought in by canoe, which would have sharply limited the growth of the society.

An Expanding Empire. The aqueduct required negotiations with the adjacent tribe, who required that the Aztecs cede themselves to rule by the mainland tribe. As the Aztec society grew due to prosperous food supply and engineering, they conquered the governing tribe; the governed became the government. It is at this time that the Aztecs underwent a rapid expansion, conquering other tribes such as the Olmecs and Toltecs, and taking their people as workers, slaves, and sacrificial victims. These conquests allowed the Aztecs to preserve their society and expand their empire as far away as Guatemala and from the Gulf of Mexico to the Pacific Ocean.

Other systems developed by the Aztecs long before being colonized include the military draft (conscription), and a legal system with judges and trials. Using the cocoa bean as currency, their busiest days in the markets of Tenochtitlan drew some 50,000 people.

The Demise of the Aztecs

In 1521, Hernán Cortés arrived on the Yucatán peninsula and found his way to Veracruz. The indigenous population joined him on his march to the head state of the Aztec Empire. The Spanish were in awe of the progress that the Aztec society had made, which paralleled some of the advanced systems in Europe at the time. The floating gardens and the prominence of the Templo Mayor must have been a sight to the Spanish conquistadors.

Of course, the story of the Spanish and their rapid conquest is full of sadness; the destruction of Aztec society by the Spanish was accomplished through the introduction of disease, advanced weaponry comprising steel, and the use of horses for the height and mobility advantages. Those who are interested are encouraged to read Guns, Germs, and Steel: The Fates of Human Societies, by Jared Diamond (1999), for a better accounting of how colonizing European armies could so easily conquer the societies they met through exploration.

In a final death blow to the Aztecs empire, all the structures of Tenochtitlan were destroyed and the building materials were dumped into the lake to form the foundation for the new Spanish settlement, called Mexico. The causeways were converted into roadways (still in use today); the aqueducts were destroyed. The Templo Mayor was razed to the ground, and in an act of conquest, the new Spanish cathedral was built atop the old Templo Mayor. This was only discovered in 1978, as a dig for a utility in the area encountered remnants of the old structure. Today, the area is preserved as a tourist attraction in the zócalo in Mexico City, where it is possible to pass under the church and view the Templo Mayor. In less than 200 years, the advancement of the society of the Aztecs can only be described as profound and its demise as tragic.

Montezuma’s Revenge

There are many tales in folklore regarding Montezuma’s revenge; however, this is an obscure one that the old civilization has left behind.

Like many modern cities that are built on marine environments (think Jakarta, Venice, Amsterdam, New Orleans, Bangkok, Kolkata, Tokyo, and even Washington DC), Mexico City underwent an astounding period of growth in the early 20th century, building on its legacy as a capital founded by the Aztecs.

However, the construction on the lake bed has had a lasting impact on modern day Mexico City. The increased weight of the colonial settlement over time has resulted in compression of the soils, and the pumping of water from the subsurface has drawn down the water table. This in turn has reduced pore pressures in the underlying soils, thus increasing the rates of settlement.

It is said that there are places in Mexico City that are settling up to 500 cm per year. This has resulted in buckling of roads, bursting of utilities, and damaged buildings as walls topple and fail. Compounded with earthquakes, the destruction is multiplied; in 1985 the earthquake that struck Mexico City caused widespread devastation, associated in part with soil-structure interaction and poor building foundations. As of the writing of this article, there is no known solution to this long-term problem. The lake, or its remnants, continue to be dewatered as development continues, exacerbating the condition. It is said that in the last century, Mexico City has subsided some 33 feet.

Perhaps Montezuma’s revenge is more profound than modern society ever thought it could be.