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Mexico's landscape on Energy and Society: the transition within the transition February 6, 2019

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Page 1: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

Mexico's landscape on Energy and Society:

the transition within the transitionFebruary 6, 2019

Page 2: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

100 years ago…1

Page 3: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

Energy and Society

• 1910 to 1922: Oil large scale production• 1922 to 1928: Decrease of Mexican oil production• Venezuela overtakes Mexico’s world second place.

• Law Changes:• Constitution 1917: Mexican Government asserted ownership of the

“subsoil,” including any natural resources discovered below ground. • 1920-1930: Long lasting conflict between Mexican Government and

private companies over secondary legislation.

2Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018

Page 4: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

• March 18, 1938: Cárdenas promulgated the expropriation decree

• Finally, in 1950, the U.S. Government abandoned its efforts to re-open the Mexican oil industry after several failed attempts to use government loans as leverage. By this time, American oil companies had begun losing interest in Mexico and preferred operating under the more favorable conditions found in the Middle East and Venezuela.

3https://history.state.gov/milestones/1937-1945/mexican-oil (last visited on February 5, 2019).

Page 5: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

Recent history…

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Page 6: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

Mexico’s Energy Reform

• August 2013: EPN sends government reform initiative to Congress• December 20, 2013: Energy Reform Decree • Constitution amendments to articles 25, 27 and 28. • Reaffirmation of the constitutional principle of state ownership • Free competition among economic actors• Strengthening of regulatory agencies• Focus on transparency and accountability• Environmental protection and fostering Clean Energy.

• By December 2015, secondary legislation:• 10 new laws• 12 modified laws

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Page 7: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

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Page 8: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

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Page 9: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

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Page 10: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

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Page 11: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

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Page 12: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

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Page 13: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

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Page 14: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

STI under Mexico’s Energy Reform

• December 20, 2013: Oil Mexican Fund

• August 6, 2014• Budget and Revenue Accountability Law

• Oil Mexican Fund resources • 65% CONACyT-SENER Hydrocarbon fund

• 15% Instituto Mexicano del Petróleo• 20% CONACyT-SENER Energy Sustainability fund

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Page 15: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

Mexican Oil Fund Resources

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Page 16: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

151

DIAGNÓSTICO TECNOLÓGICO CEMIE – GEO

2017

1

CEMIE-EÓLICO

DIAGNÓSTICO TECNOLÓGICO

2017

DIAGNÓSTICO TECNOLÓGICO

CEMIE-OCÉANO

2017

1

b

REPORTE DE DIAGNÓSTICO Tecnológico de ENERGÍA SOLAR

DIAGNOSTICO TECNOLÓGICO

CEMIE-Sol

2017

Page 17: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

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CeMIE-Geo CeMIE-Eólico

CeMIE-Océano

CeMIE-Solar

Page 18: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

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Page 19: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

Mexican Innovation Centre on Solar Energy

86

11

1,20718

Page 20: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

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Resulttype Expected Achieved

Papers 192 358

Degrees 100 182(63,61,57,1)

IPapplications 18 35

Businessplans 0 7

Page 21: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

Social Economic

Environmental Institutional

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Page 22: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree
Page 23: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

22IRENA, Global Energy Transformation: A roadmap to 2050, International Renewable Energy Agency, Abu Dhabi, 2018

Page 24: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

How to Foster the global energy transformation

1. Tap into the strong synergies between energy efficiency and renewable energy.

2. Plan a power sector for which renewables provide a high share of the energy

3. Increase use of electricity in transport, buildings and industry4. Foster system-wide innovation5. Align socio-economic structures and investment with the

transition6. Ensure that transition costs and benefits are fairly distributed

23IRENA, Global Energy Transformation: A roadmap to 2050, International Renewable Energy Agency, Abu Dhabi, 2018

Page 25: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

The Landscape of Innovation

24IRENA, Global Energy Transformation: A roadmap to 2050, International Renewable Energy Agency, Abu Dhabi, 2018

Page 26: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

Innovation

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Page 27: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

Wellbeing over well-having

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Opportunity

Page 28: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

Social Innovation

Participative knowledge management to define

projects, programmes and public policies to improve

level and quality lifeboth of individuals as well

as of communities by promoting is freedom of

choice.Martínez-Tagüeña et al

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Knowledge

Management

Community

Page 29: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

Social Innovation (2019)

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•Technological innovation with social impact• Coffee Drying Solar System for Chiapas local producers• Development of a solar dehydrator for nutraceuticals

•Social Innovation• Empowerment through Solar Energy (in collaboration with UCL)• Sustainable Magic Towns: Tlaxco, Tlaxcala

Page 30: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

Political transition

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Page 31: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

Data, data, and more dataPaís GII 2018 HDI 2018 HI 2018

Suiza 1 2 5Suecia 2 7 9Estados Unidos 4 13 18Reino Unido 3(5) 14 19Alemania 10 (9) 5 15Chile 44 (46) 44 25Costa Rica 45 (53) 63 13México 61 (58) 74 24Yemen 126 (127) 178 152

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Page 32: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

July 1, 2018

• Andrés Manuel López Obrador wins the Presidential Election• Socialist ideology• Primero los pobres (Poor people first)• Frontal Opposition to Education and Energy Reforms• Re-emergence of post-revolutionary discourse around energy and social

issues: La cuarta transformación. • This new government brings the promise of placing the focus of polity

back to well-being and empowerment for all, with an explicit acknowledgment of Mexico’s cultural and socioeconomic diversity.

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Page 33: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

January, 2019

• Energy Security is a priority• The Energy Reform won’t be touched for the next three years• Political discourse• Clean Energy has disappeared• Emergence of Renewable Energies and Clean Technologies

• CFE• Organizational Empowerment• Creation of Renewable Energy areas throughout the whole organization• Collaboration with private sector

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Page 34: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

• Coordination (Unit) on Renewable Energies in SENER• Participation of academic former presidents ANES

• Priority on Energy Efficiency (beyond regulation)• Sustainable mobility programme• Social oriented projects• Young future talents programme

• Education, evaluation, hands-on experience• Energizing with Solar Energy > 40,000 of vulnerable small communities

with a participative approach• Installing > 4 Million of solar roofs (PV)

• CONACyT focusing on the social33

Page 35: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

How to Foster the global energy transformation

1. Tap into the strong synergies between energy efficiency and renewable energy.

2. Plan a power sector for which renewables provide a high share of the energy

3. Increase use of electricity in transport, buildings and industry4. Foster system-wide innovation5. Align socio-economic structures and investment with the

transition6. Ensure that transition costs and benefits are fairly distributed

34IRENA, Global Energy Transformation: A roadmap to 2050, International Renewable Energy Agency, Abu Dhabi, 2018

Page 36: Mexico's landscape on Energy and Society · Rousseau, I., "Marco Jurídico de PEMEX”, Colegio de México, 2018 • March 18, 1938: Cárdenas promulgated the expropriation decree

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