Mexico sets regional benchmark with new battery storage rules
Source：pv magazine
Mexico is featured in the White Paper on Energy Storage in Latin America and the Caribbean, published by the Latin American Energy Organization (OLADE), as a case of progressive integration. The report explains that Mexican regulations define five storage modalities -linked to renewable energy plants, load centers, and independent solutions – and formally recognize these systems through interconnection rights, permits, and participation in energy and ancillary services markets.
The Mexican government announced in March 2025 a first-of-its-kind measure in the region: all solar and wind power plants must integrate battery systems equivalent to 30% of their installed capacity, with a minimum of three hours of discharge. The implementation of this regulation is expected to add 574 MW of battery energy storage systems (BESS) by 2028, strengthening the operation of the National Electric System and improving the management of renewable energy intermittency.
These five modalities reflect Mexico’s approach to the broad integration of energy storage, ranging from large-scale centralized projects to distributed and community solutions. According to OLADE, this classification allows for the design of differentiated policies, the adaptation of technical regulatory mechanisms, and facilitates the gradual incorporation of storage at all levels of the electricity system.
The five defined storage modalities include systems associated with renewable generation plants, mainly solar and wind, which help control production variability, supply energy during peak demand, and ensure compliance with dispatch requirements.
Storage at load centers, typically implemented by large industrial or commercial consumers, aims to optimize electricity consumption, reduce peak demand, and improve energy efficiency in energy-intensive processes.
A third category, standalone storage systems, encompasses projects not directly linked to a power plant or specific consumer. These operate as grid assets, providing services such as frequency regulation, voltage control, and backup power in emergencies.
Storage in distribution networks represents another modality, designed to reinforce electrical infrastructure in substations or along distribution lines. These systems improve supply quality, prevent local overloads, and reduce technical losses, particularly in areas with high levels of distributed generation.
Finally, storage in microgrids and isolated systems supports rural communities, island regions, and remote areas, ensuring a reliable electricity supply while reducing dependence on diesel or other fossil fuels.
Together, these five modalities illustrate Mexico’s comprehensive approach to energy storage integration, spanning large-scale centralized projects as well as distributed and community-level solutions. According to OLADE, this framework enables the design of tailored policies, the adaptation of technical regulations, and the gradual incorporation of storage technologies across all levels of the electricity system.
The White Paper also highlights that the National Electricity System Development Program (PRODESEN 2024–2038) identifies energy storage as a strategic pillar for grid stability. The plan projects that Mexico will require 8.4 GW of energy storage capacity by 2038 to support the integration of intermittent renewable sources and enhance the reliability of the national grid.
By combining specific regulations, a storage mandate for new renewable projects, and long-term planning, Mexico is emerging – according to OLADE – as a regional benchmark for energy storage development in Latin America.