Energy Efficiency and Renewable Energy in Mexico

Dr. Leticia Campos AragónResearcher at the Institute for Economic Research at the

National University of Mexico

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.

National Energy Strategy

Principle Document

Prospective Documents for Energy Sector

Specific Programs

Statistical Documents and Indicators

Level of DetailPeriodicity

MexicoTechnological Trends in a New Energy Paradigm

Economic SystemEnd Use

Combined cycleCoal Turbogas (Brayton)

Steam (Rankie) Heat/ColdCrude Petroleum Coal-fired

Eoloelectric Agricultural SectorNatural Gas Hydroelectric

Geothermoelectric LightingUranium Nucleoelectric

Industrial SectorWater

MovementWind

Endogenous Steam

Service Sector

Tidal power Power

Sugar Cane Pulp

RefineryGasoline and Diesel

Tides HydrogenAlcohol

Hydrogen Processed Natural Gas

Coa

l

Cru

de P

etro

leum

Nat

ural

Gas

Ura

nium

Wat

er

Endo

geno

us S

team

Win

d

Suga

r Can

e Pu

lp

Tide

s

Hyd

roge

n

Atmospheric fluidised bed combustion boilers (AFBC)

Production SystemSecondary Generation

Ren

ewab

leN

on-r

enew

able

Integrated solar combined cycle (ISCC)

Primary GenerationEcosystem

Ele

ctri

city

Gen

erat

ion

Integrated gasification combined cycle

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 2011. Información

consultada

en Internet

MexicoConcessionaires’

share of electricity generation of national total(Up to 30 June 2011)

Total% of total

permitsTotal

% of total concessio

naires

% of national

totalTotal

% of total concessio

naires

% of national

totalTotal

% of total concessio

naires

% of national

total

Fossil fuel concessionairesCogeneration (Pemex) 52 9.1 3,098.9 13.7 5.1 18,171.3 12.4 6.8 3,182,172.1 13.2 8.5+ Independent production 22 3.8 13,245.5 58.7 21.9 95,745.1 65.1 35.9 13,428,309.2 55.7 36.1+ Export 4 0.7 1,330.4 5.9 2.2 11,251.4 7.7 4.2 1,348,729.1 5.6 3.6

Subtotal 78 13.6 17,674.8 78.3 29.2 125,167.9 85.2 47.0 17,959,210.4 74.5 48.2

Self-supply 394 68.9 3,490.6 15.5 5.8 17,200.7 11.7 6.5 4,045,074.9 16.8 10.9Continous own uses 19 3.3 239.0 1.1 0.4 983.6 0.7 0.4 275,857.7 1.1 0.7

Subtotal 413 72.2 3,729.5 16.5 6.2 18,184.3 12.4 6.8 4,320,932.6 17.9 11.6Renewable energy concessionairesFirmSelf-supply 32 5.6 281.6 1.2 0.5 569.8 0.4 0.2 332,119.5 1.4 0.9Continous own uses 23 4.0 208.0 0.9 0.3 376.7 0.3 0.1 249,057.0 1.0 0.7Cogeneration 5 0.9 81.4 0.4 0.1 437.8 0.3 0.2 92,264.1 0.4 0.2

Subtotal 60 10.5 571.0 2.5 0.9 1,384.3 0.9 0.5 673,440.6 2.8 1.8IntermittentSmall producer 1 0.2 5 0.0 0.0 21.9 0.0 0.0 10,000 0.0 0.0Self-supply 20 3.5 600.8 2.7 1.0 2,209.6 1.5 0.8 1,137,108.5 4.7 3.1

Subtotal 21 3.7 605.8 2.7 1.0 2,231.5 1.5 0.8 1,147,108.5 4.8 3.1Subtotal 494 86.4 4,906.3 40.77 8.1 21,800.1 14.8 8.2 6,141,481.7 25.5 16.5

Total Concessionaires 572 100.0 22,581.1 100.0 146,968.0 100.0 24,100,692.1 100.0 64.7NATIONAL TOTAL 60,440.6 100.0 266,564.4 100 37,249,066.4 100

Permits Authorized capacity (MW) Investment (thousand dollars)Authorized energy (GWh/Year)

MexicoRenewable Electricity Generation Plants (SIBER, 2011)

Generating plants Capacity (MW)Geothermal Cerro Prieto I 105The geothermal field of Cerro Prieto, the second largest in the world, produces 46.37% of the electricity distributed in Baja California

Cerro Prieto II 220

Cerro Prieto III 220Cerro Prieto IV 100Humeros 40Los Azufres 192Tres Vírgenes 10

Subtotal 887Mini HydraulicThe country has 130 perennial rivers or tributaries 41 public power stations operating 390

12 private power stations operating 70

8 private power stations under construction

104

Subtotal 564Wind 3 CFE power stations operating 85.25Mean 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 434.25

1 IIE power station operating 0.35 CFE stations under construction 511.82 private power stations under construction

254

8 private power stations with new investment

1286.1

Subtotal 2571.7SunWith an average of over 5 kWh/m2 sunshine, Mexico's solar electric potential is among the highest in the world.

Wal-Mart 174 kWp

UPEMOR 6.5 kWpUAM-Iztapalapa 60 kWpParque Benito Juárez, Puebla 20 kWpInstitute for Electric Research 1.7 kWp

Subtotal 262.2 kWp

MexicoInvestments by financing modality in electricity generation

2011-2025(2010 Pesos)

SOURCE: CFE. Programa

de Obras

e Inversiones

del Sector Eléctrico

2011-2025, Subdirección

de Programación, Mexico, 2010

Million pesos

%

Total 643,634 100Independent Energy Production 104,657 16.3

New Combined Cycles 59,594 9.3New Wind Power Stations 45,063 7.0

Financed Public Works 192,460 29.9New Hydroelectric Power Stations 51,723 8.0New Geothermoelectric Power Stations 8,055 1.3New Combined Cycles 112,352 17.5New Internal Combusion Units 6,984 1.1Rehabilitation and Modernization 13,346 2.1

Budgetary Work 17,558 2.7Hydroelectric 5,776 0.9Rehabilitation and Modernization 11,782 1.8

Works with an undefined scheme 328,959 51.1New Clean Generation 262,586 40.8New Technologies 66,373 10.3

Growth outlook for installed capacity due to technology in energy supply industry in Mexico according to POISE 2009-2025

(Percentage share)

FUENTE: Elaboración

propia

con datos

de CFE. Programa

de Obras

e Inversiones

del Sector Eléctrico

2011-

2025, Subdirección

de Programación, México, 2010

MexicoCapacity, Financing Scheme and Investment Requirements

2010-2025

SOURCE: CFE. Programa

de Obras

e Inversiones

del Sector Eléctrico

2011-2025, Subdirección

de Programación, Mexico, 2010Sener. Sistema

de Información

Energética, Dirección

General de Planeación

Energética. Information consulted on the Internet at <www.sener.gob.mx>

* GVA = Un millón

de kVAEl tipo

de cambio

considerado

fue

de 12.67 por

dólar

según

el promedio

anual

del año

2010

Private Public2010 CFE�2009 Private�2

009Additional

to 2025Began

operating in 2010

Deficit pledged until 2025

PIE OPF Total until 2025

Annual average

1 2 3 3/2 (%) 4 = 2-3Generation (MW) 52,518 40,229.3 20,211.5 37,655 1,277 3.4 36,378 1,725.80 3,492.2 50,800 3,175Tranformation (GVA) * 199.2 47,095 6.4 0.014 47,088.6Distribution and transmission (thousand km) 748.40 16.69 10.50 62.9 6.19 36,334 2,271

Capacity

Investment required (billion dollars)

Committed capacity (financing)

Primary Energy used to Generate Electricity(Percentages)

Natural gas23.9%

Combustoil15.3%

Water58.7%

Diesel1.9%

Coal0.1%

Sener

[2000] Balance Nacional

de Energía. Dirección

General de Planeación

Energética, Mexico

Balance Nacional

de Energía[2010], Dirección

General de Planeación

Energética, Mexico

1965 2009

MexicoAdditional Capacity due to Technology in 2010-2025

SOURCE: CFE. Programa

de Obras

e Inversiones

del Sector Eléctrico

2011-2025, Subdirección

de Programación, Mexico, 2010

TechnologyFinishes, 

construction or bidding

Future bidding Total (MW)

Combined cycle 2,616 13,528 16,144New Generation Technology 0 6,715 6,715Hydroelectric 750 2,641 3,391Coal‐fired 678 0 678Geothermoelectric 54 304 358Turbogas 502 229 731Internal Combustion 112 205 317Eoloelectric 507 1,516 2,023Solar 0 5 5New Clean Generation 0 6,899 6,899Subtotal 5,219 32,042 37,261Increases in Laguna Verde RM 366 30 396

Total 5,585 32,072 37,657

MexicoCarbon Dioxide Emissions

(Million tonnes carbon dioxide)

Source: BP Statistical Review of World Energy, June 2011

Energy Intensity in Mexico1965-2009

Source: Drawn up on the basis of data provided by Sener. Balance Nacional

de Energía

2009. Dirección

General de Planeación

Energética, México, 2010INEGI. Banco

de Información

Económica. Information consulted on the Internet at <www.inegi.org.mx>Web. Mexico maxico

<http://www.mexicomaxico.org/Voto/PIBMex.htm>

Gross Domestic Product(Annual growth rate)

2000-2010

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>

ConclusionsIn 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.