Mexico plans 2.2 GW of battery storage for state utility by 2030

Mexico had 192 MW of battery energy storage systems (BESS) in operation as of August 2026, while national electricity planning calls for the Federal Electricity Commission (CFE) to add 2,216 MW of battery storage by 2030, according to the Latin American Energy Organization (Olade).

Mexico is among the Latin American markets with the greatest potential for battery storage growth in the coming years, according to Technical Note 21 from the Latin American Energy Organization (Olade), which examines energy storage and flexibility management in electricity systems across Latin America and the Caribbean.

The organization counted 192 MW of BESS in operation in Mexico as of August 2026, the same capacity it reported for 2025. The figure includes only systems identified as operational and excludes announced, awarded, under-construction, testing, and other projects that had not yet reached commercial operation.

The outlook changes when planned new capacity is considered. Olade said Mexico’s National Electricity System Expansion Plan includes 2,216 MW of battery storage capacity to be added by CFE by 2030. The organization said the figure shows that storage is beginning to form an explicit part of Mexico’s electricity system expansion strategy, alongside investments in new generation and networks.

The report does not add the 2,216 MW to Mexico’s current operational capacity. This distinction is central to Olade’s methodology, which separates systems already in operation from project pipelines and assets at different stages of development.

Across the organization’s 27 member countries, identified operational BESS capacity reached approximately 3,408 MW, or 3.4 GW, as of August 2026, compared with approximately 1,681 MW in its 2025 estimate. Olade cautioned that the difference does not represent only batteries commissioned during the period, as the latest edition involved a review and cleanup of information used previously.

Chile accounts for most of the regional capacity, with 2,291 MW in operation, or approximately two-thirds of the total. As of June, the country also had 2,389 MW of batteries undergoing testing and 4,960 MW under construction, bringing the three categories to approximately 9.6 GW combined. Olade considers Chile the first market in Latin America and the Caribbean where battery storage is reaching sufficient scale to have a visible impact on electricity system operations.

The regional table places Brazil behind Chile, with 479.75 MW operational, followed by Mexico with 192 MW, the Dominican Republic with 106 MW, Peru with 80 MW, and Jamaica with 21.5 MW, among other markets. The picture remains highly uneven, although the organization identifies projects under construction or at earlier stages of development in virtually all of the countries analyzed.

Olade said the expansion does not follow the same model across all markets. In Mexico, it characterizes planned development as part of a large-scale expansion strategy. In Honduras, storage is associated with grid and reliability needs through the 75 MW/300 MWh BESS being developed by Empresa Nacional de Energía Eléctrica at the Amarateca substation. Argentina has adopted competitive mechanisms to address power, reserve, and reliability needs, while Jamaica is advancing 110 MW/220 MWh of batteries associated with 220 MW of new renewable generation.

The report also argues that storage should be assessed beyond installed megawatts. Two systems with the same power rating can provide very different services depending on their energy capacity in MWh and therefore their duration. Location, availability, response speed, and operating strategy also affect the services they can provide.

This is particularly important as solar generation expands. BESS can charge during periods of high PV output and shift that energy to later periods of higher net demand. However, Olade cautioned that storage alone is not a solution to renewable curtailment and does not necessarily replace investments in transmission, interconnections, demand response, or other sources of flexibility.

Drawing on experiences in Chile, Australia, and California, the study also notes that widespread battery deployment can change the economic conditions that drive storage investment. By charging during periods of abundant electricity, BESS can put upward pressure on the lowest prices. By discharging during periods of higher net demand, they can moderate the highest prices. Once storage reaches sufficient scale, this behavior can reduce the hourly price spreads used for energy arbitrage.

Olade’s main recommendation for countries in the region is therefore to move from planning based exclusively on capacity targets toward planning based on specific system flexibility needs. The organization recommends first identifying what service is needed, where, when, and for how long; then defining the required technical characteristics; assessing available alternatives; and finally establishing economic signals capable of mobilizing investment.

For Mexico, the 192 MW currently identified as operational and the 2,216 MW planned for CFE by 2030 represent two distinct stages of storage development: a still-limited presence in the existing system and a significantly larger role envisaged as part of its expansion.

From pv magazine Mexico