Mexico is set to have half of its energy needs met by renewables much sooner than originally projected.

Leonardo Beltran, Mexico‘s deputy secretary for energy transition at Mexico’s Energy Secretariat (SENER) told Platts on the sidelines of a conference recently that half of the country’s power could well be generated by clean energy by 2034, 16 years earlier than expected.

Leonardo Beltran Mexico's deputy secretary for energy transition at SENER Current growth rate and the effectiveness of the country’s market mechanism indicates getting to the half way mark quicker, so long as some policy changes can be implemented.

“We have great confidence we can achieve this forecast,” Beltran said.

The country has a policy in place under its energy transition law to achieve the goal by 2050, supported by clean energy certificate (CEL) requirements and long-term electricity auctions.

Analysts from Genscape and IPD Latin America also told S&P Global Platts that the more aggressive projections are possible if Mexico includes cogeneration and nuclear power in the “clean energy” bucket.

Long-term auctions need to be improved to help support development of additional clean generation sources, including hydropower, geothermal, cogeneration and nuclear power and analysts also recommend policy changes to compensate for provision of grid stability, including mechanisms to support storage and fast response thermal units.

Meanwhile Actis, a private equity investment firm, has acquired InterGen’s power generation assets in Mexico for $1.256bn.

As per the terms of the deal signed in December 2017, Actis purchased InterGen’s Mexico portfolio including six combined-cycle gas turbine projects with a total generation capacity of 2,200 MW and a 155 MW wind project with partner IEnova.

With the completion of the deal, which is said to be Actis’ largest acquisition till date, the Mexico