March 17th, 2014 – Throughout the world, governments are looking for clean energy alternatives to the use of fossil fuels.

They are also looking to decrease dependence on resources that have limitations. That has led to the rapid growth seen in the solar energy industry in countries all around the world. In Mexico, the state-run oil company PEMEX has always had a lock on providing a majority of the energy needs, but that is about to change.

Solar Farm in Mexico
Solar manufacturing in Mexico is now considered a viable energy alternative. A new solar panel farm is currently under development in La Paz. The project is currently estimated to cost $100 million with a large percentage of that being derived from international financing resources. The farm will have 132,000 solar panels making it the largest solar facility in all of Latin America. This farm will replace the area’s dirty thermoelectric plant that produces noxious air and creates a bevy of health issues for the local residents.

Positive Effects on Mexico’s Economy
The success of the solar panel farm will go a long way towards increasing solar manufacturing in Mexico and other parts of Latin America. These countries have an abundance of the primary ingredient needed for success…abundant sunshine year-round. If the financing model works, it is conceivable that even larger farms could be built in the future. Through a strong commitment to solar energy development, the Mexican economy could reap great benefits. Revenue streams could be developed by selling energy to other countries. Local Mexico manufacturing concerns would benefit, as their fixed costs for energy would drop significantly. Most importantly, the citizens would benefit as an outside investment in Mexico manufacturing plants would increase employment opportunities and help decrease the poverty issues currently facing the nation.

Changing Political Environment in Mexico
In recent years, the Mexican government has been under steady pressure to address the poverty issues in many areas of the country. While state-sponsored investment has been slow, there are now constitutional changes taking place that will allow for more private intervention, especially in the energy industry. By allowing the country to continue its rapid industrialization, Mexico figures to secure a favorable position amongst many other countries in the energy sector. These philosophical changes have been brought about by Mexico’s legislature in order to bring hope and promise to the Mexican economy for years to come. The country already possesses rich oil reserves. If the solar energy industry takes hold in Mexico, the country will stand to gain the stability they have long desired.

As many of the world’s economies move towards low carbon energy sources, those countries that put themselves on the cutting edge will prosper. The development of this privately financed solar panel farm in La Paz could go a long way in providing other countries with a road map on how to implement significant changes that will put their economies in line to grow just like the economy in Mexico.