Difference between revisions of "Mexico Energy Situation"

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*[http://www.amdee.org/ Asociacion mexicana de energia eolica ](Spanish only)
 
*[http://www.amdee.org/ Asociacion mexicana de energia eolica ](Spanish only)
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Mexico is the 4th place in the world in geothermal installed capacity<ref>Ren 21 Renewable 2011 Global status report</ref>,&nbsp;with 958 MW (2011). The technology accounts for 2.53% of the total electricity production, but most of the resources available with the current plant designs seem to be already tapped. Installed capacity has fallen 7.6% since 2006, while only 186MW of proved reserves remain to be exploited.&nbsp;Recent studies, however, have suggested that up to 2.8GW producing 9.79TWh per year could be exploited using binary-cycle and condensation plants.<ref name="ENE2012">x</ref>
 
Mexico is the 4th place in the world in geothermal installed capacity<ref>Ren 21 Renewable 2011 Global status report</ref>,&nbsp;with 958 MW (2011). The technology accounts for 2.53% of the total electricity production, but most of the resources available with the current plant designs seem to be already tapped. Installed capacity has fallen 7.6% since 2006, while only 186MW of proved reserves remain to be exploited.&nbsp;Recent studies, however, have suggested that up to 2.8GW producing 9.79TWh per year could be exploited using binary-cycle and condensation plants.<ref name="ENE2012">x</ref>
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=== Biomass ===
 
=== Biomass ===
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It is estimated that fuel wood represents between 8% and 10% of the final energy consumption, and 36% to 45% of the residential use. In figures compiled by the National Forest Commission (CONAFOR), around 25% of the national population uses wood for cooking (up to 89% in the rural sector). Domestic use of wood for self-consumption accounts for 24.9 Mm<sup>3</sup> of wood per year, according to many studies this share is mostly dead biomass and therefore Not a major cause of deforestation, having even a positive impact in forest conservation and prevention of wildfires<ref>http://www.oikos.unam.mx/CIEco/bioenergia/images/stories/Bioenergy/PDF/doc38%20bioenergia%20en%20los%20hogares.pdf</ref>. Fuel wood use by the small industry (6 Mm<sup>3</sup>) would only be the 4<sup>th</sup> cause of deforestation, after Land-Use change, use of wood for industrial (non-energetic) purposes, and wildfires.<ref name="CONAFOR">http://www.conafor.gob.mx:8080/documentos/docs/4/1585Programa%20Nacional%20Dendroenergia.pdf</ref>
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Bagasse from the sugar cane industry provides 1.1% of the primary energy consumption, including 512MW installed electric capacity. Important opportunities might derive in this sector from modernization of the technology and full exploitation of sub-utilized installed capacity.<ref name="ENE2012">X</ref>
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The potential for electricity generation from biogas gas been estimated in 3GW, but the current installed capacity still lies at 54MW, and is growing at some 10MW per year since 2008.<ref name="ENTE2011">X</ref>
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The production of fuel ethanol should take off in the following years, as PEMEX will be buying up to 230 million liters anhydrous ethanol per year by 2017. This buy alone would add up to some 0.1% of the current final energy consumption. Other energy crops include Jatrhopa, of which 8,113 ha have been sown between 2007 and 2011, mainly in Chiapas and Yucatán. According to the National Institute of Agricultural & Forest studies (INIFAP) a total of 18,000ha could be used for bio-fuel crops<ref>ENE2012
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</ref>
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= Policy framework, laws and regulations =
 
= Policy framework, laws and regulations =
  
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= Institutional set up in the energy sector =
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Since 2007 renewable energies are explicity included in the strategies of the National Development Plan (PND), and since 2008 a regulatory framework was established in the Law for the Exploitation of Renewable Energies and Financing of the Energetic Transition (LAERFTE). The law set obligations for the Ministry of Energy (SENER) to develop a “National Strategy for the Energy Transition and the Sustainable Use of Energy”, and a “Special Programme for the Utilization of Renewable Energies”. The national goals of substitution of fossil fuels are also set in the LAERFTE. Its amendment in June 2011 sets a maximum share for fossil fuels of 65% of electricity production by 2024, 60% by 2035 and 50% by 2050.&nbsp;<ref name="SENER_Renovables">http://www.renovables.gob.mx/renovables/portal/Default.aspx?id=1669&lang=1</ref>
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When it comes to concrete policies, however, the development has been tepid, and mainly in the form of getting out of the way of private investors, rather than explicitly supporting renewable energies.
 +
 
 +
Since 1975 electricity production and distribution are regulated by the Law for the Public Service of Electric Energy (LSPEE). An important reform in 1992 opened the door for private investors under the schemes of self-supply, cogeneration, Independent Electricity Producers (PIE), and “small producers” for less than 30MW. The last two can sell electricity to CFE, and supply 26% of the national electricity consumption (SENER - BNE 2010). Cogeneration permits represent 14% of the total installed capacity, with 3.12GW, and self-supply schemes go up to 20% (most wind power projects fall in this category).<ref name="BNE2010">http://www.sener.gob.mx/res/PE_y_DT/pub/2011/Balance%20Nacional%20de%20Energ%C3%ADa%202010_2.pdf</ref><ref name="AMDEE2011">http://amdee.org/Proyectos/AMDEE%20Presentacin%20en%20Espaol%202011.pdf</ref>
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In 2001 the Contracts for Interconection of Renewable Energy Sources (CIFER) were first published, as well as a methodology for cost calculation of electricity transmission services (wheeling). In 2010 wheeling charges were significantly reduced to $0.03037MXP/kWh and $0.06074MXP/kWh for high and low voltage users, respectively<ref>http://www.criteriohidalgo.com/notas.asp?id=8106</ref>.<ref name="AMDEE2011">http://amdee.org/Proyectos/AMDEE%20Presentacin%20en%20Espaol%202011.pdf</ref>In the 2005 the Law of Income Tax (Ley del ISR) was modified to allow for 100% depreciation of “machinery and equipment for electricity generation from renewable sources”.<ref>http://www.cre.gob.mx/articulo.aspx?id=184</ref><ref name="SENER_Renovables">X</ref>
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In June 2011, article 36 bis of the LSPEE was amended to include the cost of externalities in the generation of electricity:
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''… Both in the short and long terms electricity production must be met such that it has the lower cost to the Federal Electricity Commission '''considering environmental externalities for each technology''', and such that it offers optimum stability, quality, and safety…<ref>http://www.diputados.gob.mx/LeyesBiblio/pdf/99.pdf</ref>''
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The methodology to calculate these externalities is not specified, but article 10 of the LAERFTE states that they shall be calculated by SENER, with help from the SHCP, SEMARNAT and SS (Ministries of Economy, Environment, and Health, respectively)&nbsp;
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= Institutional set up in the energy sector<ref>http://www.energia.gob.mx/webSener/res/168/Cap1_SecEner2003.pdf</ref> =
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The hydrocarbon sector is dominated by the state-owned PEMEX - Petróleos Mexicanos [Mexican Petroleum] since the oil expropriation of 1938 by president Lázaro Cárdenas. Five subsidiary companies inside PEMEX control the complete process from exploration and production to national and international trade of refined products.&nbsp; An exception is the transportation and distribution of natural gas and imported LPG, in which private enterprises are allowed to take part.
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The electricity sector is fully controlled by CFE - Comisión Federal de Electricidad [Federal Electricity Commission] since in October 2009 it absorbed LyFC – Luz y Fuerza del Centro, which used to provide electricity to Mexico City and neighboring municipalities. Since 1992 several independent contractors can generate electricity for CFE, and the possibility is open for private international electricity trade.
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The government entity in charge of all aspects of energy regulation is SENER – Secretaría de Energía [Ministry of Energy], and three smaller entities take part in different areas: the CRE – Comisión Reguladora de Energía [Energy Regulatory Commission] for gas and electricity, CONAE – Comisión Nacional para el Ahorro de Energía [National Commission for Energy Savings], and CNSNS – Comisión Nacional de Seguridad Nuclear y Salvaguardias [National Commission for Nuclear Safety and Safeguards].
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= Activities of other donors =
 
= Activities of other donors =

Revision as of 17:40, 10 May 2012

Overview

Mexico
  Ethiopia Flag.gif
   Ethiopia Situation.gif

Capital

Mexico DF

Official language(s)

Spanish

Government

Presidential Republic

President

Felipe Calderon

Total area

1,972,550 km2

Population[1]

112 336 538 (2010)

GDP (nominal)[2]

 US$1,034,804 Million (2010)

GDP Per capita

US$ 9,123 (2010)

HDI

0.770 (2011)[3]

Electricity generation

 257.88 TWh/year (2011) [4]

Access to electricity

97.61 (2011)[5]

Wind Energy

873 MW (Dec 2011)

Solar Energy

MW

Geothermal Energy 965 MW (By August 2010) [6]

Energy situation

Mexico is ranked as the 7th biggest Oil producer in the World[7], and this is reflected in its energy mix. From the 9.25 EJ (primary energy) produced in 2010, 93% came from fossil fuels. The net energy consumption on the same year was 8.15EJ, yielding a fairly low average of 75.2GJ per capita which, however, corresponds to and an energy intensity of 4.96MJ/GDP (US$ PPP) comparable to that of most European countries.[8]


RTENOTITLE



Renwable energy sources

According to SENER the installed capacity of renewable energy sources by the end of 2011 was 2.4GW, corresponding to 3.88% of the total.[9] Wind parks La Venta III, Oaxaca I and IV, which started operation by April 2012 represent 307MW more[10], rising the share of renewables to at least 4.38%.


Hydropower

According to the National Energy Strategy 2012 - 2026, by the end of 2011 a total of 11.6GW effective installed capacity was available from Hydro, of which only 1% corresponds to small hydro[9], a much higher figure of 416MW is given in the site for Renewable Energies of the Ministry of Energy[11], the difference being probably due to the definition of "small" hydro. The value is in any case expected to grow fast, as it is now three times higher than it was in 2006, and additional 132.6MW already have permission for construction.

The total estimated potential for large hydro (>40GWh/year) corresponds to an installed capacity of 52 GW, of which nearly 20% is already in operation. An overall production of 38TWh/year could be expected from the overall capacity. The potential for small hydro (5MW to 30MW) was estimated by CONAE in 2005 as 3.2GW, but so far no reliable estimates exist for micro- and mini-hydro.[12],[13][9]

Solar power

Mexico is a sun belt country with an annual average irradiation of 5.5 kWh/m 2·day. Depending on location and time of the year the value may go from 3.0 to 8.5 kWh/m 2·day[9], making solar radiation a potentially unlimited energy source. A simplistic but frequently given figure is that a square area of 25km side covered with PV panels in the Sonora desert could provide todays complete electricity demand.

The actual potential is limited by the (still) high cost of electricity production with PV and the absence of subsidies for the technology. CONUEE in cooperation with the GTZ estimated a market niche of only 89MW for grid connected PV systems with grid parity by 2009, corresponding to small percentage of households in the DAC (High Consumption Domestic) tariff. The same study estimates 693MW if the price of PV modules goes down 20% within 5 years, and 1336MW with a further reduction of 50%.[14]


Installed capacity started to take off during the last few years. The first plant on public service started operating in 2011 in Santa Rosalía, Baja California Sur, with 1MWp PV. A 5MWp plant should start operating in 2012 near Mexicali, Baja California Norte.[9]The first large scale project for Concentrated Solar Power is the hybrid combined-cycle plant Agua Prieta II, which should be completed by 2013. The solar part consists of 14MW of Parabolic through mirrors.[15]


The potential for solar hot water heaters was estimated as 115PJ by CONAE in 2005, the figure represents 2.3% of the current final energy consumption, and was originally calculated considering a 50% coverage of all energy requirement for low temperature heating. According to the National Association of Solar Energy (ANES) 1.94 million square meters of collectors were already installed by 2010, generating some 9.3PJ per year (8% of the estimated potential).[16]




More infomation:

Wind power

According to SENER the potential for wind energy in Mexico is higher than 50GW, while the Mexican Association of Wind Energy (AMDEE) rises this value to 71GW[17] (both with capacity factors higher than 20%). The levelized cost of electricity production from wind was calculated as 10.3US¢/kWh by 2011, just above nuclear (9.8¢/kWh) and only 25% higher than coal (8.3¢/kWh). With rising prices of fossil fuels SENER estimates that 20GW of wind energy projects could become competitive by 2020.[9]

The actual installed capacity is booming, and went from 2MW in 2006 to 1080MW by April 2012[9][18], it is expected that by the end of 2012 private and public projects will add up to 2.2GW, 4% of the electric installed capacity[19]. Most projects are located in the Isthmus of Tehuantepec, which according to AMDEE has a potential on its own of 10GW, offering wind power densities of more than 800W/m2 and capacity factors in the range of 40%. La Rumorosa, in Baja California is apparently lagging behind, but might have 4.57GW installed within the next five years.[17]



NREL hass developed  wind atlas of some regions.


More information:


Geothermal

Mexico is the 4th place in the world in geothermal installed capacity[20], with 958 MW (2011). The technology accounts for 2.53% of the total electricity production, but most of the resources available with the current plant designs seem to be already tapped. Installed capacity has fallen 7.6% since 2006, while only 186MW of proved reserves remain to be exploited. Recent studies, however, have suggested that up to 2.8GW producing 9.79TWh per year could be exploited using binary-cycle and condensation plants.[9]


Biomass

It is estimated that fuel wood represents between 8% and 10% of the final energy consumption, and 36% to 45% of the residential use. In figures compiled by the National Forest Commission (CONAFOR), around 25% of the national population uses wood for cooking (up to 89% in the rural sector). Domestic use of wood for self-consumption accounts for 24.9 Mm3 of wood per year, according to many studies this share is mostly dead biomass and therefore Not a major cause of deforestation, having even a positive impact in forest conservation and prevention of wildfires[21]. Fuel wood use by the small industry (6 Mm3) would only be the 4th cause of deforestation, after Land-Use change, use of wood for industrial (non-energetic) purposes, and wildfires.[22]


Bagasse from the sugar cane industry provides 1.1% of the primary energy consumption, including 512MW installed electric capacity. Important opportunities might derive in this sector from modernization of the technology and full exploitation of sub-utilized installed capacity.[9]

The potential for electricity generation from biogas gas been estimated in 3GW, but the current installed capacity still lies at 54MW, and is growing at some 10MW per year since 2008.[19]


The production of fuel ethanol should take off in the following years, as PEMEX will be buying up to 230 million liters anhydrous ethanol per year by 2017. This buy alone would add up to some 0.1% of the current final energy consumption. Other energy crops include Jatrhopa, of which 8,113 ha have been sown between 2007 and 2011, mainly in Chiapas and Yucatán. According to the National Institute of Agricultural & Forest studies (INIFAP) a total of 18,000ha could be used for bio-fuel crops[23]




Policy framework, laws and regulations

Since 2007 renewable energies are explicity included in the strategies of the National Development Plan (PND), and since 2008 a regulatory framework was established in the Law for the Exploitation of Renewable Energies and Financing of the Energetic Transition (LAERFTE). The law set obligations for the Ministry of Energy (SENER) to develop a “National Strategy for the Energy Transition and the Sustainable Use of Energy”, and a “Special Programme for the Utilization of Renewable Energies”. The national goals of substitution of fossil fuels are also set in the LAERFTE. Its amendment in June 2011 sets a maximum share for fossil fuels of 65% of electricity production by 2024, 60% by 2035 and 50% by 2050. [11]


When it comes to concrete policies, however, the development has been tepid, and mainly in the form of getting out of the way of private investors, rather than explicitly supporting renewable energies.

Since 1975 electricity production and distribution are regulated by the Law for the Public Service of Electric Energy (LSPEE). An important reform in 1992 opened the door for private investors under the schemes of self-supply, cogeneration, Independent Electricity Producers (PIE), and “small producers” for less than 30MW. The last two can sell electricity to CFE, and supply 26% of the national electricity consumption (SENER - BNE 2010). Cogeneration permits represent 14% of the total installed capacity, with 3.12GW, and self-supply schemes go up to 20% (most wind power projects fall in this category).[8][24]

In 2001 the Contracts for Interconection of Renewable Energy Sources (CIFER) were first published, as well as a methodology for cost calculation of electricity transmission services (wheeling). In 2010 wheeling charges were significantly reduced to $0.03037MXP/kWh and $0.06074MXP/kWh for high and low voltage users, respectively[25].[24]In the 2005 the Law of Income Tax (Ley del ISR) was modified to allow for 100% depreciation of “machinery and equipment for electricity generation from renewable sources”.[26][11]


In June 2011, article 36 bis of the LSPEE was amended to include the cost of externalities in the generation of electricity:

… Both in the short and long terms electricity production must be met such that it has the lower cost to the Federal Electricity Commission considering environmental externalities for each technology, and such that it offers optimum stability, quality, and safety…[27] The methodology to calculate these externalities is not specified, but article 10 of the LAERFTE states that they shall be calculated by SENER, with help from the SHCP, SEMARNAT and SS (Ministries of Economy, Environment, and Health, respectively) 




Institutional set up in the energy sector[28]

The hydrocarbon sector is dominated by the state-owned PEMEX - Petróleos Mexicanos [Mexican Petroleum] since the oil expropriation of 1938 by president Lázaro Cárdenas. Five subsidiary companies inside PEMEX control the complete process from exploration and production to national and international trade of refined products.  An exception is the transportation and distribution of natural gas and imported LPG, in which private enterprises are allowed to take part.

The electricity sector is fully controlled by CFE - Comisión Federal de Electricidad [Federal Electricity Commission] since in October 2009 it absorbed LyFC – Luz y Fuerza del Centro, which used to provide electricity to Mexico City and neighboring municipalities. Since 1992 several independent contractors can generate electricity for CFE, and the possibility is open for private international electricity trade.

The government entity in charge of all aspects of energy regulation is SENER – Secretaría de Energía [Ministry of Energy], and three smaller entities take part in different areas: the CRE – Comisión Reguladora de Energía [Energy Regulatory Commission] for gas and electricity, CONAE – Comisión Nacional para el Ahorro de Energía [National Commission for Energy Savings], and CNSNS – Comisión Nacional de Seguridad Nuclear y Salvaguardias [National Commission for Nuclear Safety and Safeguards].


Activities of other donors

References

  1. ↑ INEGI http://www.inegi.org.mx/
  2. ↑ http://data.worldbank.org/country/mexico
  3. ↑ Human Development Report http://hdr.undp.org/en/
  4. ↑ Secretaría de Energía con datos de Comisión Federal de Electricidad y Luz y Fuerza del Centro / Área Central
  5. ↑ Comision Federal de Electricidad http://www.cfe.gob.mx/QUIENESSOMOS/ESTADISTICAS/Paginas/Estadistica.aspx
  6. ↑ Secretaria de Energia-Mexico http://www.renovables.gob.mx/portal/Default.aspx?id=1669&amp;amp;lang=1
  7. ↑ https://www.cia.gov/library/publications/the-world-factbook/rankorder/2173rank.html
  8. ↑ 8.0 8.1 SENER - Balance Nacional de Energía 2010 http://www.sener.gob.mx/res/PE_y_DT/pub/2011/Balance%20Nacional%20de%20Energ%C3%ADa%202010_2.pdf Cite error: Invalid <ref> tag; name "BNE2010" defined multiple times with different content
  9. ↑ 9.0 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 SENER - Estrategia Nacional de Energía 2012 - 2026, http://www.sener.gob.mx/res/PE_y_DT/pub/2012/ENE_2012_2026.pdf Cite error: Invalid <ref> tag; name "ENE2012" defined multiple times with different content Cite error: Invalid <ref> tag; name "ENE2012" defined multiple times with different content Cite error: Invalid <ref> tag; name "ENE2012" defined multiple times with different content Cite error: Invalid <ref> tag; name "ENE2012" defined multiple times with different content Cite error: Invalid <ref> tag; name "ENE2012" defined multiple times with different content Cite error: Invalid <ref> tag; name "ENE2012" defined multiple times with different content Cite error: Invalid <ref> tag; name "ENE2012" defined multiple times with different content Cite error: Invalid <ref> tag; name "ENE2012" defined multiple times with different content
  10. ↑ ACCIONA, Boletín de Prensa http://boletin-secex.comercio.mityc.es/es-ES/abril-2012/Noticias-Interes/Paginas/ACCIONA-inaugura-los-parques-eolicos-Oaxaca.aspx
  11. ↑ 11.0 11.1 11.2 www.renovables.gov.mx Cite error: Invalid <ref> tag; name "SENER_Renovables" defined multiple times with different content Cite error: Invalid <ref> tag; name "SENER_Renovables" defined multiple times with different content
  12. ↑ Valdez Ingenieros, Panorama actual de la mini-hidráulica en México http://www.cie.unam.mx/~rbb/Lic/luishectormicrohidraulica.pdf
  13. ↑ SENER - Valdez Ingenieros (2005) http://www.energia.mx/webSener/res/168/A8_Minihi.pdf
  14. ↑ http://www.gtz.de/de/dokumente/sp-Nichos-de-mercado-para-sistemas-fotovoltaicos-en-conexion-la-red-electrica-en-Mexico.pdf
  15. ↑ http://www.cnnexpansion.com/obras/2010/09/02/hidraulica-energia-agua-prieta-central
  16. ↑ http://www.conae.gob.mx/work/images/Procalsol.pdf
  17. ↑ 17.0 17.1 Asociación Mexicana de Energía Eólica Cite error: Invalid <ref> tag; name "AMDEE" defined multiple times with different content
  18. ↑ http://boletin-secex.comercio.mityc.es/es-ES/abril-2012/Noticias-Interes/Paginas/ACCIONA-inaugura-los-parques-eolicos-Oaxaca.aspx
  19. ↑ 19.0 19.1 Estrategia Nacional para la Transición Energética y el Aprovechamiento Sustentable de la Energía http://www.sener.gob.mx/webSener/res/0/Estrategia.pdf Cite error: Invalid <ref> tag; name "ENTE2011" defined multiple times with different content
  20. ↑ Ren 21 Renewable 2011 Global status report
  21. ↑ http://www.oikos.unam.mx/CIEco/bioenergia/images/stories/Bioenergy/PDF/doc38%20bioenergia%20en%20los%20hogares.pdf
  22. ↑ http://www.conafor.gob.mx:8080/documentos/docs/4/1585Programa%20Nacional%20Dendroenergia.pdf
  23. ↑ ENE2012
  24. ↑ 24.0 24.1 http://amdee.org/Proyectos/AMDEE%20Presentacin%20en%20Espaol%202011.pdf
  25. ↑ http://www.criteriohidalgo.com/notas.asp?id=8106
  26. ↑ http://www.cre.gob.mx/articulo.aspx?id=184
  27. ↑ http://www.diputados.gob.mx/LeyesBiblio/pdf/99.pdf
  28. ↑ http://www.energia.gob.mx/webSener/res/168/Cap1_SecEner2003.pdf
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