1 Energy Efficiency and Renewable Energy in Mexico Dr. Leticia Campos Aragón Researcher at the Institute for Economic Research at the National University of Mexico
2 Article 33.- The Energy Secretariat is responsible for ( ) setting and conducting the country s energy policy and ensuring its implementation, prioritizing energy security and diversification, energy savings and environmental protection, for which it will, among other actions and in terms of applicable regulations, coordinate, undertake and promote programs, products, studies and research within is jurisdiction; VI. In February of each year, the president will submit the National Energy Strategy, with a 15-year horizon, drawn up with the participation of the National Energy Council, to Congress for approval within a maximum limit of 30 working days I. Director of the Energy Secretariat; II. Under-Secretary of Energy Planning and Technological Development of the Energy Secretariat; III. Under-Secretary of Hydrocarbons of the Energy Secretariat; IV. Under-Secretary of Electricity of the Energy Secretariat; V. Chief Clerk of the Energy Secretariat; VI. President of the National Hydrocarbon Commission; VII. President of the Energy Regulating Commission; VIII. Director General of the National Commission for Efficient Energy Use; IX. Director General of the National Commission for Nuclear Safety and Safeguards; X. Director General of Petróleos Mexicanos; XI. Director General of the Federal Electricity Commission; XII. Director General of Luz y Fuerza del Centro; XIII. Executive Director of the Institute for Electric Research; XIV. Director General of the Mexican Petroleum Institute; XV. Director General of the National Institute of Nuclear Research and XVI. Director General of the National Water Commission. Representatives of the federal and state branches, local authorities, public institutes of higher education and scientific research and of the social and private sectors, in accordance with the Eleventh Operating Rule of the National Energy Council.
3 Periodicity Principle Document National Energy Strategy Level of Detail Prospective Documents for Energy Sector Specific Programs Statistical Documents and Indicators
4 Mexico Technological Trends in a New Energy Paradigm Ecosystem Primary Generation Production System Secondary Generation Economic System End Use Renewable Non-renewable Coal Crude Petroleum Natural Gas Uranium Water Wind Endogenous Steam Sugar Cane Pulp Tides Hydrogen Combined cycle Turbogas (Brayton) Steam (Rankie) Coal-fired Eoloelectric Hydroelectric Geothermoelectric Nucleoelectric Integrated gasification combined cycle Atmospheric fluidised bed combustion boilers (AFBC) Tidal power Refinery Hydrogen Alcohol Processed Natural Gas Gasoline and Diesel Heat/Cold Lighting Movement Power Agricultural Sector Industrial Sector Service Sector Coal Crude Petroleum Natural Gas Uranium Water Endogenous Steam Wind Sugar Cane Pulp Tides Hydrogen Integrated solar combined cycle (ISCC) Electricity Generation
5 Mexico Concessionaires share of electricity generation of national total (Up to 30 June 2011) Permits Authorized capacity (MW) Authorized energy (GWh/Year) Investment (thousand dollars) Total % of total permits Total % of total concessio naires % of national total Total % of total concessio naires % of national total Total % of total concessio naires % of national total Fossil fuel concessionaires Cogeneration (Pemex) , , ,182, Independent production , , ,428, Export , , ,348, Subtotal , , ,959, Self-supply , , ,045, Continous own uses , Subtotal , , ,320, Renewable energy concessionaires Firm Self-supply , Continous own uses , Cogeneration , Subtotal , , Intermittent Small producer , Self-supply , ,137, Subtotal , ,147, Subtotal , , ,141, Total Concessionaires , , ,100, NATIONAL TOTAL 60, , ,249, FUENTE: Elaboración propia a partir de datos proporcionados por la CRE. Tabla de permisos de generación e importación de energía eléctrica administrados al 31 de junio de Información consultada en Internet
6 Mexico Renewable Electricity Generation Plants (SIBER, 2011) Generating plants Capacity (MW) Geothermal Cerro Prieto I 105 The geothermal field of Cerro Prieto, the second largest in the world, produces 46.37% of the Cerro Prieto II 220 electricity distributed in Baja California Cerro Prieto III 220 Cerro Prieto IV 100 Humeros 40 Los Azufres 192 Tres Vírgenes 10 Subtotal 887 Mini Hydraulic The country has 130 perennial rivers or tributaries 41 public power stations operating private power stations operating 70 8 private power stations under construction 104 Subtotal 564 Wind 3 CFE power stations operating Mean annual wind speed of between 6.5 and 8.5 m/s for heights of between 80 and 100 meters 5 private power stations operating IIE power station operating CFE stations under construction private power stations under construction private power stations with new investment Subtotal Sun With an average of over 5 kwh/m2 sunshine, Mexico's solar electric potential is among the highest Wal-Mart 174 kwp in the world. UPEMOR 6.5 kwp UAM-Iztapalapa 60 kwp Parque Benito Juárez, Puebla 20 kwp Institute for Electric Research 1.7 kwp Subtotal kwp
7 Mexico Investments by financing modality in electricity generation (2010 Pesos) Million pesos Total 643, Independent Energy Production 104, New Combined Cycles 59, New Wind Power Stations 45, Financed Public Works 192, New Hydroelectric Power Stations 51, New Geothermoelectric Power Stations 8, New Combined Cycles 112, New Internal Combusion Units 6, Rehabilitation and Modernization 13, Budgetary Work 17, Hydroelectric 5, Rehabilitation and Modernization 11, Works with an undefined scheme 328, New Clean Generation 262, New Technologies 66, SOURCE: CFE. Programa de Obras e Inversiones del Sector Eléctrico , Subdirección de Programación, Mexico, 2010 %
8 Growth outlook for installed capacity due to technology in energy supply industry in Mexico according to POISE (Percentage share) FUENTE: Elaboración propia con datos de CFE. Programa de Obras e Inversiones del Sector Eléctrico , Subdirección de Programación, México, 2010
9 Mexico Capacity, Financing Scheme and Investment Requirements CFE2009 Private2 009 Additional to 2025 Capacity Began operating in 2010 Deficit pledged until /2 (%) 4 = 2-3 Committed capacity (financing) Private Public PIE OPF Total until 2025 Investment required (billion dollars) Generation (MW) 52,518 40, , ,655 1, ,378 1, , ,800 3,175 Tranformation (GVA) * , ,088.6 Distribution and transmission (thousand km) ,334 2,271 Annual average * GVA = Un millón de kva El tipo de cambio considerado fue de por dólar según el promedio anual del año 2010 SOURCE: CFE. Programa de Obras e Inversiones del Sector Eléctrico , Subdirección de Programación, Mexico, 2010 Sener. Sistema de Información Energética, Dirección General de Planeación Energética. Information consulted on the Internet at <www.sener.gob.mx>
10 Primary Energy used to Generate Electricity (Percentages) Coal 0.1% Diesel 1.9% Combustoil 15.3% Water 58.7% Natural gas 23.9% Sener  Balance Nacional de Energía. Dirección General de Planeación Energética, Mexico Balance Nacional de Energía, Dirección General de Planeación Energética, Mexico
11 Mexico Additional Capacity due to Technology in Technology Finishes, construction or bidding Future bidding Total (MW) Combined cycle 2,616 13,528 16,144 New Generation Technology 0 6,715 6,715 Hydroelectric 750 2,641 3,391 Coal fired Geothermoelectric Turbogas Internal Combustion Eoloelectric 507 1,516 2,023 Solar New Clean Generation 0 6,899 6,899 Subtotal 5,219 32,042 37,261 Increases in Laguna Verde RM Total 5,585 32,072 37,657 SOURCE: CFE. Programa de Obras e Inversiones del Sector Eléctrico , Subdirección de Programación, Mexico, 2010
12 Mexico Carbon Dioxide Emissions (Million tonnes carbon dioxide) Source: BP Statistical Review of World Energy, June 2011
13 Energy Intensity in Mexico Source: Drawn up on the basis of data provided by Sener. Balance Nacional de Energía Dirección General de Planeación Energética, México, 2010 INEGI. Banco de Información Económica. Information consulted on the Internet at <www.inegi.org.mx> Web. Mexico maxico <http://www.mexicomaxico.org/voto/pibmex.htm>
14 Gross Domestic Product (Annual growth rate) INEGI. Banco de Información Económica. Information consulted on the Internet at <www.inegi.org.mx> Web. Mexico maxico <http://www.mexicomaxico.org/voto/pibmex.htm>
15 Conclusions In order to meet the commitment expressed in the National Energy Strategy, published in February 2010 and February 2011to generate 35% of electricity on the basis of clean sources, this energy strategy has three main thrusts: energy security; economic and productive efficiency and environmental sustainability. However, this strategy lacks a long-term policy regarding energy, which is a strategic area for combating poverty and promoting the country s sustainable industrial development. The Instrumentation of mechanisms that will send the desired signals for the development of clean technologies was mentioned as an action and there was a failure to define a clear commitment to tax fossil fuel energies and to promote renewable technologies (solar, wind, geothermal, biomass, ocean, hydraulic, etc.) Continue the uncertainty regarding there is 6, 899 MW of new clean technology which will have to be defined over the next year and for which tenders will have to be requested. This means that Mexico is not working to meet the commitment expressed in the National Energy Strategy, published in February 2010 and February 2011 to generate 35% of electricity on the basis of clean sources.