21st October 2026
Mexico is preparing billions of dollars of new investment in renewable energy, joining countries around the world racing to expand their electricity supplies. Britain is investing heavily too, but turning ambitious plans into affordable energy and lasting jobs remains a major challenge.
Mexico is preparing to approve renewable energy projects worth an estimated $12.5 billion, potentially adding 8.2 gigawatts of generating capacity. The proposals include a substantial expansion of renewable electricity as the country seeks to strengthen its power supply and meet growing demand.
It is another example of the worldwide shift towards alternative energy. But Mexico is not alone. China, the United States and European countries are investing heavily in renewable generation, battery storage, electricity networks and other technologies intended to reduce dependence on fossil fuels.
So where does Britain stand in this increasingly competitive race?
A worldwide investment boom
The International Energy Agency estimated that global investment in clean-energy technologies would reach around $2.2 trillion in 2025, approximately twice the amount invested in fossil fuels. China accounts for a particularly large share of this spending, supported by its enormous manufacturing capacity in solar panels, batteries and electric vehicles.
The investment is not simply about cutting carbon emissions. Countries also want greater energy security, more reliable electricity supplies and protection from the price shocks that follow international conflicts and disruptions to oil and gas markets.
Mexico's plans illustrate another important point. Expanding renewable electricity does not necessarily mean abandoning oil and gas. Countries can pursue both approaches while trying to meet rising demand for energy.
For governments, the challenge is to ensure that enough electricity is available at a competitive price while the energy system changes.
Britain is investing too
Britain is not standing still. Government figures put UK energy-transition investment at approximately £64.7 billion in 2025, up from £48.9 billion in 2024. The Government has also reported more than £90 billion in private investment announcements for clean-energy industries between July 2024 and March 2026.
These figures need to be treated carefully. Investment recorded in a particular year is not the same as announcements of projects that may take several years to complete. Nor does money committed to a project mean that electricity is already being generated.
Nevertheless, the scale of activity is substantial.
Offshore wind remains central to Britain's plans, alongside onshore wind and solar power. Nuclear energy is intended to provide dependable low-carbon electricity, while batteries and other storage technologies can help balance supply when the wind drops or the sun is not shining.
Britain has considerable experience in offshore energy, particularly in the North Sea. The challenge is to turn that experience into a reliable, competitive electricity system while maintaining the engineering skills and industrial supply chains needed to support it.
The grid is a major obstacle
Generating electricity is only half the battle. It must also be transported to where people need it.
Britain's electricity network needs substantial investment to connect new wind farms and solar developments, move power across the country and manage fluctuations in supply. Some renewable projects have faced long waits for grid connections, while planning decisions and infrastructure construction can take years.
The Government's Clean Power 2030 programme recognises the scale of the task. Expanding renewable generation without upgrading the network risks leaving some electricity difficult or expensive to deliver when it is needed.
This is particularly relevant to Scotland, where substantial wind resources are located far from some of the largest centres of electricity demand.
New transmission lines and substations are expensive, and the costs of maintaining and upgrading the network form part of the wider energy bill. The benefits of investment therefore depend on whether the system can deliver cheaper electricity, reduce wasted generation and limit the need for expensive backup power.
Will households see cheaper bills?
Renewable electricity has an important advantage: wind and sunlight do not have to be purchased as fuel. Once a wind farm or solar installation is operating, its generation costs can be relatively low.
That does not mean electricity bills will automatically fall as more renewable capacity comes online. Consumers also pay towards networks, balancing the system and other costs involved in providing a reliable supply.
The transition could reduce Britain's exposure to volatile international gas prices, but the timing and extent of any savings remain uncertain. The cost of building the new system must be considered alongside the potential cost of continuing to depend heavily on imported fuels.
The real test is not simply how many wind turbines or solar panels are installed. It is whether the whole system can supply electricity reliably and affordably.
What does this mean for Scotland and Caithness?
Scotland has a significant opportunity to benefit from the energy transition. Its wind resources, coastline and engineering expertise could support renewable generation, maintenance, storage and the businesses supplying new infrastructure.
For Caithness and the wider Highlands, however, there is a difference between hosting energy projects and securing lasting local economic benefits.
Large developments can create construction work, but not every job will be permanent or go to a local worker. The longer-term opportunity lies in attracting engineering contracts, technical services, maintenance work, training and supply-chain businesses.
Communities also need to consider the impact of new pylons, substations and other infrastructure. If rural areas are expected to accommodate developments that serve the wider country, it is reasonable to ask what lasting benefits they will receive in return.
The opportunity is not just to produce more electricity, but to build a stronger local business base around the industry.
Turning ambition into results
The global renewable-energy race is about more than announcing impressive investment figures. Countries must turn plans into completed projects, connect them to the grid and ensure that the resulting electricity is dependable and competitively priced.
Britain remains a significant participant in this transition, but investment announcements alone cannot guarantee lower bills, new manufacturing jobs or greater energy security.
For Scotland, and particularly for Caithness, the question is whether the growth of renewable energy will create a lasting economic opportunity rather than simply more infrastructure across the landscape.
The world is investing heavily in its energy future. Britain's challenge is to make sure that the money spent delivers reliable power, competitive costs and tangible benefits for the communities expected to help make that future possible.
Further Reading
https://oilprice.com/Alternative-Energy/Solar-Energy/Mexico-Poised-to-Approve-125-Billion-in-Renewable-Energy-Projects.html