Mexico City, Mexico --- (METERING.COM) --- August 12, 2013

The Inter-American Development Bank (IDB) has approved funding of $145,250 to support a field study of smart metering technologies and distributed generation options for low income household developments in Mexico.

The funding will come from the Italian Trust Fund for MIF (Multilateral Investment Fund) Project Preparation.

No further information is available on this project, but Mexico’s electric utility Comisión Federal de Electricidad (CFE) has been installing smart metering over several years now, and is expected to significantly ramp up its deployment in the years ahead.

A recent study by Zpryme on Mexico’s smart grid market outlook projects that this market will grow at a projected compound annual growth rate (CAGR) of 25% from $1.23 billion in 2012 to $7.42 billion in 2020 – of which a major share will be AMI.

Zpryme notes that like many Latin American countries, Mexico faces problems such as power outages, electrical theft, and poor energy infrastructure. Therefore, smart grid technology provides an unprecedented opportunity for the country to improve both functionally and economically.

Driving this growth, according to Zpryme, is the growing private sector participation in the power sector, which will stimulate innovation, along with other factors such as forward thinking energy policies. To apply best practices for faster results, Mexico is looking to leverage its proximity to the U.S. and intensify collaboration on policy, standards, interoperability, and security.

Last year Mexico’s Energy Regulatory Commission received a $405,000 grant from USTDA to support the development of a regulatory framework for smart grid.