U.S.-Mexico Cross-Border Energy Future: Building the North American Energy Powerhouse

U.S.-Mexico Energy Cooperation

The energy landscape in North America is at a critical juncture. With growing demand, particularly in renewable energy, and global competition for energy leadership, the need for cross-border cooperation has never been greater. The U.S. and Mexico have an opportunity to harness their collective energy potential, creating an interconnected system that not only stabilizes energy supplies but also positions North America as a global leader. Cooperation in this area is essential, as both countries face increasing pressure to meet environmental commitments and ensure energy security.

Renewable Energy on the Rise

One of the most promising areas of collaboration is renewable energy, particularly solar and wind power. The U.S. and Mexico are both naturally blessed with an abundance of sunlight, especially in border regions like Texas and Baja California, where major solar projects are emerging.

For example, San Diego Gas & Electric’s (SDG&E) Cross-Border Energy Project is one of the largest cross-border solar farms, designed to import clean energy from Mexico’s Baja California into the U.S. This project highlights how geographic advantages and cooperation can provide mutual benefits—Mexico supplies abundant solar energy, and the U.S. reaps the benefits of cleaner electricity. In tandem with these renewable efforts, improved cross-border transmission lines ensure that power can be efficiently delivered across national boundaries.

Electric Grid Interconnections

Cross-border energy projects aren't limited to renewables; significant progress has been made in integrating national grids to share electricity and ensure energy security. The Western Electricity Coordinating Council (WECC) has long coordinated the flow of electricity across the western U.S., Canada, and Mexico. These interconnections allow for load balancing between countries, ensuring that peak demand is met, particularly in extreme weather conditions.

One notable success is the Brownsville-Matamoros interconnection, which links Texas with the Mexican state of Tamaulipas. This cross-border grid connectivity has proved essential during periods of power shortages or high demand, such as during heat waves or energy crises like the one in Texas during winter 2021. The integration between the two countries allowed Mexico to send power to Texas when needed, demonstrating the value of shared infrastructure.

Similarly, Canada and the U.S. share deep energy ties through projects like the Quebec-New England interconnection, which supplies clean hydroelectric power from Canada to the northeastern U.S. This project showcases how cross-border cooperation can help reduce reliance on fossil fuels and provide a steady supply of renewable energy. These projects are perfect examples of how North America can work together to strengthen regional energy security.

Opportunities for Expansion

As the U.S. and Mexico continue to develop their energy sectors, opportunities abound for further interconnections. For instance, Mexico’s vast geothermal resources in states like Baja California could be harnessed to supply the U.S. with even more clean energy. Additionally, by investing in more advanced grid infrastructure, both countries could ensure more efficient energy transfers that would reduce costs for consumers on both sides of the border.

Investments in smart grid technology and energy storage solutions could also play a role in smoothing the energy flows between the two countries. These technologies would not only make the systems more efficient but would also help integrate a greater share of renewable energy sources like wind and solar into the grids.

The Road Ahead: Policy Alignment and Leadership

For this cooperation to succeed, governments in the U.S. and Mexico must align their energy policies to foster an environment that promotes cross-border investment. The U.S.-Mexico-Canada Agreement (USMCA) provides a framework, but more work is needed to ensure that the energy sector takes full advantage of this trilateral partnership. Policymakers should prioritize regulatory harmonization and streamline approval processes for cross-border infrastructure projects.

Both countries stand to benefit enormously by pursuing a shared vision of energy leadership. This vision includes expanding existing cross-border projects, building new transmission lines, and cooperating on renewable energy initiatives that can set a global example of regional energy cooperation.