Renewable Energy Sector

An Expert's View about Renewable Energy in Mexico

Posted on: 1 Dec 2012

In accordance with a long term sustainable development strategy, Mexico has started promoting renewable energy (RE) and energy efficiency (EE).

Renewable Energy Sector in Mexico With oil reserves rapidly declining and a high vulnerability to climate change effects, Mexico has acquired strong commitments towards the reduction of carbon emissions and the promotion of renewable energies. Energy efficiency measures are part of a long term sustainable development strategy. Market overview The strategy for climate change is one of the central themes of the current public policy, defined in the National Development Plan for 2006-2012. The plan’s special programme for climate change, reconsidered energy production and consumption habits. It includes as key activities, the promotion of clean technology and R&D in order to reduce Mexico’s dependency on fossil fuels. As a consequence of this and in accordance with a long term sustainable development strategy, Mexico has started promoting renewable energy (RE) and energy efficiency (EE) in an increasingly active way. In November 2008, a strategic energy reform was passed, which included the new law for the use of renewable energies and the financing of the energy transition (LAERFTE) and the law for sustainable use of energy (LASE). Renewable Energies The National Energy Strategy 2012-2026 sets new objectives towards energy security, efficiency in production, use and environmental sustainability. The objectives include growth of unconventional O&G resources, increased power generation from gas and more non fossil fuel energy sources in the mix. It is also the first time GHG emissions are included into planning activities of the energy sector. Energy Efficiency Electricity demand in Mexico has grown by more than 4% a year since 1995. Managing this growth through energy-efficiency measures in the end-use sectors will be critical to mitigating greenhouse gas emissions. Key Opportunities There will be some specific interconnection contracts for the power projects from renewable sources of energy: ξ Capacity recognition and energy bank (self-supply). ξ Net metering (small production of solar power). ξ Small Producer Sales Contract. ξ Guidance to establish transmission and distribution costs for self supply projects. ξ Access to transmission and distribution grids to exploit superficial and underground hydro resources. There is a requirement to have a usage or exploitation permits (SEMARNAT-CAN). Wind power There is a total estimated potential of 40,000 MW, of which only 6,507 MW will be used by 2014. Oaxaca has one of the best wind power generation potentials in the world; the wind is strong enough to generate electricity with a plant factor of approximately 50%. In Europe, where wind energy is more developed, it amounts to 30%. Additionally, the State of Baja California has become an ideal location for wind power projects aimed for energy export to the US. Hydro power The current generation of hydro power in Mexico is 36 TWh and is expected to grow to 39 TWh by 2014. This type of power covers 4.6% of the primary energy consumption in the country and generates 13% of all country’s electricity. Bio-fuels There is a goal to include 1% of bio fuels in the fuel mix used by aeroplanes in Mexico by 2015. On April 2011, a Mexican airline performed the first flight using 50% bioturbosine on the Mexico City-Chiapas route. This would imply the generation of 40 million litres per year. The Airports and Auxiliary Services Agency (ASA) has estimated the industry will require and investment of US$480 to 720 million in the next two years to satisfy the growing demand for bio-fuels. According to the CFE Project Development Plan, between 2007 and 2015 CFE will install and start an operation of 3,160 MW for public services with renewable sources such as the following: 2,390 MW hydro, 158 MW geothermal and 25 MW solar. Additionally, 150 MW from mini- hydraulic and biomass will come into operation for self-supply Latest export opportunities – Renewable Sector Latest export opportunities - Mexico Getting into the Market British companies wishing to develop their business in the Mexican market are advised to undertake as much market research and planning as possible in the UK. UKTI’s team in Mexico, with its wide local knowledge and experience, can provide a range of services to British-based companies wishing to grow their business in the Mexican markets. This can include: • Provision of market information. • Validated lists of agents/distributors. • Key market players or potential customers in the Mexican market. • Establishment of interest of such contacts in working with you. • Arrangement of appointments. • Organisation of seminars or other events for you to meet contacts and promotion of your company in the Mexican market. To find out more about commissioning this work, or accessing other UKTI services and specialist advice, please visit the UKTI website to find contact details for your local UKTI office. Contacts Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS). To commission research or for general advice about the market, get in touch with our specialists based overseas - or contact your local international trade team. ξ Einar Holmen, British Embassy Mexico. Tel: (+52 55) 1670 3274 or email: ξ Jacqueline Sanchez, British Embassy Mexico. Tel: (+52 55) 1670 3252 or email: ξ Elié Villeda, British Embassy Mexico. Tel (+52 55)1670 3335 or email: Contact your local international trade team Major Events Prosperity Outreach Campaign, focus on Renewable Energies, Environment and Green Growth November, 2012 Queretaro UKTI events UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows. Latest UKTI events – renewable energy sector Useful links More about OMIS and other UKTI services for exporters
Posted: 01 December 2012

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