The Americas: Investing Opportunities In Energy Projects

November 8th, 2011

What is ProMexico?

• ProMexico is the Mexican Government institution in charge of strengthening Mexico’s participation in the international economy. With this objective in mind, the institution supports the export activity of companies established in the country and coordinates actions to attract foreign direct investment to national territory.

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Where is ProMexico?

• 27 Offices of ProMéxico in 19 countries to promote Mexico’s business in the world

• We team up with Mexico's Embassies and Consulates abroad to have greater presence in international markets.

North America:New YorkChicagoMiamiHouston/DallasLos AngelesVancouverTorontoMontreal

Latin America:Sao PauloSantiagoBogotaGuatemala

Europe:LondresMadridParisMilánBruselasEstocolmoFrankfurt

Middle East:Dubai

Asia:ShanghaiSeulTokioTaipeiSingapurBeijingMumbai

It’s Time to Go Green with Mexico

Attraction of FDI in green industry projects

• Since 2005, Mexico has attracted over 4.77 billion dollars in FDI

• In the last two years, 3.3 billion dollars have entered the country through calls for tender by SENER, as infrastructure projects to interconnect renewable sources to the country's electrical grid.

• Of all the investments registered, more than 90% have been in the wind power industry.

• The use of renewable sources of energy, such as wind, hydro, biomass, biogas, biofuels, etc., is allowed for private investors.

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Proyectos por país de procedencia

Mexico's Potential by Energy Type

Wind Power. Mexico's estimated potential to utilize wind power exceeds 71,000 MW, according to data from the Electrical Research Institute (IIE) and SENER. In approximately 22 of the 31 Mexican states, wind plants can be installed with operating means above 20%. Estimated investments in these projects reach 5.5 billion dollars and create more than 10 thousand direct and indirect jobs.

Mexico's Potential by Energy Type

Solar Power. Close to 90% of Mexican territory has daily irradiance ranging between 5 and 6 KW/h per square meter. These numbers position Mexico as one of the areas with the highest levels in the world. It is estimated that the total capacity of Mexico's photovoltaic installations reaches 25.11 MWp, which has meant a total investment of around 125.5 million dollars. The Federal Government has various programs for the promotion and use of solar technologies, such as the 2007-2012 Program to Promote Solar Water Heaters in Mexico (PROCASOL).

Mexico's Potential by Energy Type

Mini Hydraulic Power. According to statistics published by the CFE and the CRE, Mexico has small hydroelectric plants with an installed capacity of 392 MW. It is estimated that their approximate potential is 3,250 MW, which means only 12% of the total capacity to be developed is being utilized.

Geothermal Power. In terms of installed capacity to generate electricity from geothermal resources, Mexico is among the top five leaders in the world. As of October 2010, Mexico was ranked fourth, with 958 MW, behind the US (3,093 MW), the Philippines (1,904 MW) and Indonesia (1,197 MW), according to data published by SENER.

Mexico's Support Instruments to promote renewable energy

•Zero tariff, for equipment that prevents pollution and promotes technological research and development.

•Accelerated depreciation, for infrastructure projects that renewable energy sources: up to 100 percent in one year

•Economic incentives for technical research and development, National Council of Science and Technology

•Interconnection agreement for intermittent source, of electric power FPC = CFE

•Mechanism for Clean Development, by Kyoto Protocol to obtain Emission Reduction Certificates.

•Fund for Energy Transition and Sustainable Use of Energy

Cesar Bueno

Trade & Investment Commissioner

ProMexico - Miami

Tel. (305) 415-9360

444 Brickell Ave., Suite 450

Miami, Florida 33131cesar.bueno@promexico.gob.mx

www.promexico.gob.mx

promexicomiami

@ProMexicoMiami