Distributed generation (DG) — also known as on-site self-generation or dispersed generation — refers to electricity production through smaller-scale systems located close to the point of consumption. In industrial parks, these systems are typically installed on rooftops, walls, parking areas, or underutilized land, making them a key tool for reducing costs and increasing energy resilience.
In Mexico, industrial parks in the northern and Bajío regions (Nuevo León, Chihuahua, Jalisco, Guanajuato) are leading the adoption of distributed generation thanks to their industrial density and energy development.
A. What is it and how does it work?
In Mexico, distributed generation allows users to install exempt generators and connect them to the electrical grid through interconnection contracts with CFE (Comisión Federal de Electricidad).
Solar photovoltaic panels dominate this segment: over 99% of distributed generation contracts are photovoltaic.
According to the Energy Regulatory Commission (CRE), Mexico reached an accumulated capacity of 4,447.92 MW across 518,019 interconnection contracts as of 2024.
The traditional limit for DG without permits is 0.5 MW (500 kW), but in the coming months it will increase to 0.7 MW (700 kW).
You may also like: Types of Energy that Power Mexico’s Industrial Sector
B. Benefits and challenges for industrial parks
Benefits
- Lower electricity costs and reduced exposure to high tariffs.
- Operational resilience: ensures supply continuity during grid failures.
- Contribution to sustainability goals and emissions reductions demanded by today’s investors.
- Potential to monetize excess energy, subject to regulatory approval.
Challenges
- If the current regulatory cap remains at 0.5 MW, only a fraction of industrial roof potential can be used. So far, only 13% of industrial roofs can be leveraged under this limit.
- AMPIP (Mexican Association of Industrial Parks) proposes raising the cap to 5 MW, which would unlock up to 60% of industrial rooftops (around 52 million m²).
- Regulatory procedures, permits, and interconnections can be complex and slow, especially for isolated supply or larger-scale projects.
- Grid modernization and storage systems (batteries) are needed to manage renewable generation intermittency.
You may also like: Energy Consumption Schemes in Industrial Parks
C. Keys to implementing DG in industrial parks
- Conduct an energy audit to assess peak demand and define optimal DG capacity.
- Evaluate roof conditions, shading, orientation, and structural factors to determine system feasibility.
- Define the interconnection scheme with CFE (net metering, net billing, or isolated supply) based on permitted limits.
- Integrate storage batteries for backup and energy use optimization.
- Manage permits and procedures with regulators (CRE / CNE / CENACE) and local authorities.
- Monitor and maintain the system to ensure performance, lifespan, and operational safety.
To learn more about how to leverage distributed generation in your industrial park, request your demo.
