Embed Size (px)
Citation preview
Mobilizing Investments in Commercial or Near-Commercial Technologies
Two successful stories in Mexico: wind energy and energy efficiency
Francisco BarnésMake Markets Work for Climate
October 17, 2006Amsterdam
Two Succesful Stories
1. Wind Energy
2. Energy Efficiency
Mexican Legislation
Electrical System
State reserved activities
Open to private participation
Generation Transmission Distribution
Public Companies:CFE & LFC
National Transmission
Grid
Third Parties OthersIPP´s
Self Supply Independent lines
CFE & LFC
At the end of 2005, Mexico had almost 54,000 MW of installed generation capacity.
38,200 MW belong to the two public power companies, CFE and LFC
8,300 MW correspond to IPP’s generation for public service (GCC)
7,300 MW are for self supply.
Power Generation with Renewable Energy
Mexico has 12,800 MW of installed capacity based on renewable energy, 23% of total installed capacity
Renewable Energy CFE-LFC Self-Supply Isolated Systems
Hydro 10,930 MW
Mini-hydro 365 MW 47 MW
Geothermal 960 MW
Biomass 465 MW
Biogas 20 MW
Solar 18 MW
Wind 2 MW
Total 12,257 MW 532 MW 18 MW
Wind potential in Oaxaca
The state of Oaxaca has a wind potential of at least 10,000 MW.
Average wind velocity is above 15 m/s
(An average of 30 empty trucks are turned-over by the wind every year)
Measured plant load factor is 52%
Wind Potential in OaxacaWind velocity distribution
Renewable Energy Fund
In 2003, the Mexican Government received final approval from the Global Environment Facility (GEF) for a 70 million dollar grant to establish a new fund to promote large-scale renewable energy projects.
The strategy of the Fund is based on providing a temporary incentive (five years) for power generated with renewable energy sources and delivered to the public service network under an Independent Power Production Agreement .
The incentive is expected to bridge the gap between the required return per delivered KWh and the price CFE is allowed to pay to IPP´s under existing regulations.
CFE will bid the first IPP project at the end of 2006 with a capacity of 100 MW to enter into operation in 2008.
During the second stage, at least 300 MW are expected to be put in place, to enter into operation between 2009 and 2012
Regulatory framework
New regulatory measures have been issued by the Energy Regulatory Commission (CRE) with the purpose of encouraging the development of generation projects from intermittent renewable energy sources.
The main elements of this regulatory scheme are the following: Generated energy is transmitted when available;
Excess energy generated at any given time may be “stored” within the power utility (CFE) and “withdrawn” when required, even in different time periods;
Energy exchanges are based on tariff prices;
At the end of the year, excess energy “stored” in the system may be sold to CFE at 85% of the short-term generation cost;
Wheeling charges are paid in terms of the transmitted energy, not in terms of reserved capacity.
CFE recognizes as plant capacity the monthly average of the energy generated during peak demand;
Fiscal incentives
On the 1st of December 2004 a modification of the Income Tax Law entered into effect.
Companies investing in machinery and equipment for power generation with renewable energy may deduct up to 100% of the investment in a single year.
Transmission Limitations
Existing transmission infrastructure in Oaxaca is very limited and does not allow the evacuation of all the electric power that will be generated by the self-supply producers.
A new 400 KV transmission line is required for that purpose.
CFE cannot commit public funds for the new transmision line if there are not firm commitments of the permit holders to install the appoved generating capacity.
Nueva Línea de 400kVNueva Línea de 400kV
The CRE carried out an Open Season to reserve transmission capacity on the new line.
1,900 MW were committed by several private companies.
The budget for the construction of the new line has already been requested by CFE to Congress.
The new line will be ready by 2009.
Expected Results
585 MW of new wind generation capacity, installed or contracted by CFE for public service, will enter in operation between 2007 and 2012.
At least 445 MW of new capacity for self supply will be installed in Oaxaca between 2007 and 2008.
1600 MW of additional capacity for self-supply will be installed between 2009 and 2012.
Two Succesful Stories
1. Wind Energy
2. Energy Efficiency
Energy Efficiency Programs
Year Program Objectives
1989 CONAE to promote energy savings through the adoption of standards and programs
1989 FIPATERM - CFE to promote house insulation and the replacement of inefficient electric appliances
1990 FIDE to reduce electric demand by reducing barriers for energy efficiency improvement
1995 ILUMEX - FIDE to replace incandescent bulbs with energy saving fluorescent bulbs - GEF support
1999 FGB - CONAE to reduce power consumption in Federal Goverment´s buildings,
2001 PEMEX - CONAE to reduce power and energy consumption in PEMEX operations
Many efforts had been developed in Mexico over the last years to improve energy efficiency
Adoption of new standards
300
350
400
450
500
550
600
650
700
750
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
kw
h
MEX USA
From 1993 to 2003, the energy demand for a 10 ft3 refrigerator has been reduced by 52.7%
- 24.5 %
- 38.9 %
- 52.7 % NOM-072-SFCI-1994
NOM-015-ENER-1997
NOM-015-ENER-2001
FIPATERM program
FIPATERM program was initiated by CFE in 1990, in the city of Mexicali, B.C., with summer temperatures >40°C, to reduce the consumption of electricity through thermal insulation
In 1996, the replacement of inefficient air conditioners was included
In 2001 the program was extended to four Northwestern states
In 2002 the replacement of old refrigerators was included in the scope
In 2003 the program was extended to all areas of the country attended by CFE (more than 25 million costumers)
Results up to 2005:
120,000 houses have been insulated
200,000 air conditioners have been replaced
350,000 refrigerators have been replaced
ILUMEX program
ILUMEX program was initiated in 1999, to replace incandescent lamps by energy saving fluorescent lamps.
It was promoted by FIDE with the support of CFE and GEF
Results up to day:
Over 16 million compact fluorescent lamp
Estimated energy savings
12 % of total electricity sales (1,900 GWh) will be be saved in 2006, when measured with 1995 baseline.
0
5000
10000
15000
20000
25000
2000 2001 2002 2003 2004 2005 2006
Gw
h
Summer saving time Energy Efficiency Standards
Industrial, commercial and public service Domestic (FIPATERM-ILUMEX)
3%
6%
9%
12%
15%
6.5% 7.2%
8.4%9.6%
10.7% 11.4%12.0%
% o
f e
lec
tric
en
erg
y s
ale
s
