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Several countries are focusing their efforts on diversifying electricity generation to promote the transition towards a sustainable low-carbon energy system through the strategic development of the value chains related to renewable energy industries. In this way, the development of a national industry that helps to ensure a clean and affordable electricity supply and that also generates important socio-economic benefits, has gained relevance worldwide. This article proposes a methodology and economic model that considers technological progress and economies of scale to analyze a potential upstream development and integration of the value chain of the photovoltaic industry in Mexico. The results show that the upstream development of a national photovoltaic industry is financially viable and sustainable, and with which the national demand for photovoltaic technology could be satisfied by 76% and imports reduced by 47%, both compared to a reference scenario. This enables the generation of more than 447,000 jobs and an added value of more than 12,000 M USD. This would increase the national value content to 89% by 2040 and contribute to the national goal of generating 35% of its electricity through clean energy technologies, fulfilling the commitment established in its nationally determined contributions. Furthermore, it would enable the transition towards a sustainable energy future in Mexico.