Green Energy Sector - Mexico

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Green Energy SectorMexico


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Historical Background

CONAE was created in 1989 and providestechnical assistance on the energyefficiency

Signed the Kyoto protocol in 2000

In 2005, 50 new projects for renewablewere introduced

Production of solar panels and windturbins invite FDI

Released strategy documents in 2006-2007by the ICCC about climate change showsdesire to introduce more renewable energy

27.09.2011Sigurd Solvoll & Robin Werner2


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Executive Summary

Grew by 15.9% in 2010

Reached a volume of 39.3 billion kWh

Representing a compound annual growth rate(CAGR) of 0.3% for the period spanning2006-2010.

In comparison, the US and Canadian markets

grew with CAGRs of 3.1% and 4.6%



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Mexicos postion in theAmericas



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Leading companies

The Comisin Federal de Electricidad (CFE)

Energia Azteca

Union Fenosa



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Leading sectors

Wind power- Major source of renewable energy. Main areas are

Oaxaca, Zacatecas, Baja California

Mini-hydro power- Using potential or Kinetic energy generated by

water that flows through a natural or artficialslope bewteen two points



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Leading sectors

Geothermal energy- Energy from the earths core as heat, that moves in

magma and reach levels close to the surface.

Biomass energy- Obtained from animal, products and vegetable waste

Solar energy- Two types; Photovoltaic and solar thermal. Amoung

top ten producing countries



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Renewable EnergySector - Mexico



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Potential of the sectorI



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Potential of the sectorII



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Market Forecast andchallenges

Mexican market value forecast- In 2015, the Mexican renewable energy market is

forecast to have a value of $3.9 billion, an increase of

25.8% since 2010. Mexican market volume forecast- In 2015, the Mexican renewable energy market is

forecast to have a volume of 49.7 billion kWh, anincrease of 26.5% since 2010.

Generel market forecast- The compound annual growth rate of the market in the

period 201015 is predicted to be 4.8% and the value tobe $3.9 billion



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Barriers to marketgrowth Monopolisitic structure of theMexican energy sector andelectricity rates

Regulatory Barriers

Limited Access to finance

Lack of incentives Permitting time



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Conclusion


New policies and strategies

Renewable Energy sector has a hugepotential, but is growing slowly

Barriers, monopolistic structure andcorruption

Possible solution: Reduce regulatory,administrative and policy barriers

Focus on the wind sector in order to increase the volumeof renewable energies in the energy mix

Focus on solar and mini hydro since these sectors bear

the highest growth potential in the long run


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Q&As



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References Celsias. (2011). Celsias. Retrieved September 24, 2011 fra

http://www.celsias.com/article/mexico-renewable-energy-potential/

Datamonitor. (2010).Mexico: Renewable Energy. Retrieved September 20, 2011

Garrison, J. L. (2010). Clean energy & climate change opportunities. Retrieved September 22,2011 fra http://pdf.usaid.gov/pdf_docs/PNADS950.pdf

Ideas. (2010). The development of renewable energy in Mexico. Retrieved Septemer 23, 2011 frahttp://www.iniciativasustentable.com.mx/boletin_x/17_boletin_ideas_esp.pdf

IEE. (2007).Mexico and Brasil: Renewable Energy Markets and Policies. Retrieved September

23, 2011 fra http://www.iea.org/work/2007/bestpractice/Huacuz.pdf OECD. (2008). Eco-innovation policies in Mexico. Retrieved September 22, 2011 fra

www.oecd.org/dataoecd/27/17/42876980.pdf

Renewable Energy World. (2011). Renewable Energy World. Retrieved September 20, 2011 frahttp://www.renewableenergyworld.com/rea/news/article/2011/06/mexico-advances-renewable-goals-but-much-more-could-be-done

White House. (2009). U.S.-MEXICO ANNOUNCE BILATERAL FRAMEWORK ON CLEAN ENERGY AND CLIMATECHANGE Retrieved September 20, 2011 fra http://www.whitehouse.gov/the_press_office/US-Mexico-Announce-Bilateral-Framework-on-Clean-Energy-and-Climate-Change/

World Energy. (2010).Mexico offers diverse opportunities for investment in Renewable Energy.Retrieved September 19, 2011 frahttp://www.milbank.com/images/content/9/0/901/0208_Mexico_Offers_Diverse_Opportunities_World_Energy.pdf


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Green Energy Sector - Mexico