Tesla‘s planned Mexican EV production plant has encountered difficulties due to insufficient power generation in the area, which would significantly pressure the local grid. Now, reports suggest that the Mexican government is developing a new enormous solar project, which may aid Tesla’s power concerns.
Project Sanora
The giant solar energy park is located in the desert of northern Mexico. It is expected to generate its first electricity and enter the grid in April 2023. Notably, the project is being developed by the state-owned energy company CFE, which anticipates completion by 2027.
The Mexican government claims it would be the biggest solar project in Latin America. The scoop emerged from Reuters, stating that Project Sonora’s estimated cost is $1.6 billion.
However, it must be noted that the project’s power generation is yet to be determined, given that the funding is not fully accumulated. As of now, the local government has already installed 10% of the solar panels on the site, but they are not yet incorporated into the grid.
With this flagship initiative, Mexico seeks to enhance its reputation as an eco-friendly nation. The Mexican president even recognizes Project Sanora as the country’s foundation for a renewable future.
“Sonora is going to be reference point for what (sustainable) development should look like. We want to invite all the countries of the world to be part of that.”
Foreign Minister Marcelo Ebrard
Notably, it was presented to the nation’s leaders and prospective investors late last week.
With the launch of Project Sanora, residents would enjoy lower energy bills with such a sizable solar installation. Most importantly, the local grid may gain from enhanced stability, which is exactly what Tesla is after.
Moreover, Tesla and other automakers may be able to expand their footprint in Mexico through the country’s solar project boom. It may also lead to additional EVs for North America and developing Latin American markets, as well as jobs and investment for undeveloped regions of the nation.
Mexico’s potential for enormous solar projects
As reports indicate, Mexico has a strong potential for solar projects for the following reasons:
- The northern part of the country features vast swaths of uninhabited desert
- Constant sunlight because of its proximity to the equator
- Little cloud cover, which could reduce the efficiency of solar panels
Unfortunately, the Mexican government has found it difficult to adopt and utilize the technology, particularly given the ongoing crime and security issues along the Mexican border with the United States. Nonetheless, Project Sonora is underway, which would significantly aid Tesla’s Mexican plant venture.
