Development and Upstream Integration of the Photovoltaic Industry Value Chain in Mexico

Mariano O. Birlain-Escalante, Jorge M. Islas-Samperio (), Ángel de la Vega-Navarro and Arturo Morales-Acevedo
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Mariano O. Birlain-Escalante: Instituto de Energías Renovables, Universidad Nacional Autónoma de México, Privada Xochicalco S/N, Col. Centro, Temixco 62580, Mexico
Jorge M. Islas-Samperio: Instituto de Energías Renovables, Universidad Nacional Autónoma de México, Privada Xochicalco S/N, Col. Centro, Temixco 62580, Mexico
Ángel de la Vega-Navarro: Faculty of Economics, Universidad Nacional Autónoma de México, Ciudad Universitaria, Mexico City 04510, Mexico
Arturo Morales-Acevedo: Department of Electrical Engineering, Centro de Investigación y de Estudios Avanzados, Instituto Politécnico Nacional, Mexico City 07360, Mexico

Energies, 2023, vol. 16, issue 4, 1-27

Abstract: Several countries are focusing their efforts on diversifying electricity generation to promote the transition towards a sustainable low-carbon energy system through the strategic development of the value chains related to renewable energy industries. In this way, the development of a national industry that helps to ensure a clean and affordable electricity supply and that also generates important socio-economic benefits, has gained relevance worldwide. This article proposes a methodology and economic model that considers technological progress and economies of scale to analyze a potential upstream development and integration of the value chain of the photovoltaic industry in Mexico. The results show that the upstream development of a national photovoltaic industry is financially viable and sustainable, and with which the national demand for photovoltaic technology could be satisfied by 76% and imports reduced by 47%, both compared to a reference scenario. This enables the generation of more than 447,000 jobs and an added value of more than 12,000 M USD. This would increase the national value content to 89% by 2040 and contribute to the national goal of generating 35% of its electricity through clean energy technologies, fulfilling the commitment established in its nationally determined contributions. Furthermore, it would enable the transition towards a sustainable energy future in Mexico.

Keywords: PV industry; Mexico; value chain; development model; socio-economic benefits; GHG mitigation (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
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