mexico renews itself - ProMéxico

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Mexico’s renewable energy
industry has grown in leaps
and bounds over the last few
years, due to a combination
of government incentive
programs and an influx of
foreign capital.
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“The heftiest cost in a wind project is the turbine and few are
made in Mexico. They are generally imported. We’ve received
equipment from Denmark, Spain and the US.” This, says Rodríguez
Olivé, opens up investment opportunities for equipment
developers and manufacturers for the wind industry.
The challenge, he says, is twofold: “to improve transmission
infrastructure, so the grid reaches places where the wind is strong
enough to generate electricity, and promote the development
and growth of small-scale producers so more generation projects
spring up around the country.”
A Bright Business
The solar energy industry in Mexico has “a positive outlook in
terms of the development of a market on which natural, environmental
and other factors have come together with increased
supply, resulting in more accessible prices,” says Alberto Valdés,
president of the National Committee for Energy Regulation and
deputy editor for the National Solar Energy Association (ANES).
Solar water heating systems designed for residential and commercial
use are one niche that has grown considerably. This
expansion can partly be attributed to “financial mechanisms for
residential developments that provide for solar thermal energy
systems, like the Green Mortgage program implemented by the
National Workers’ Housing Fund Institute (INFONAVIT),” which
has already equipped around 120,000 homes with solar water
heaters. Now all homes mortgaged via INFONAVIT are required
to have solar water heaters and comply with related regulations.
Aside from federal programs, several states have introduced initiatives
to promote the use of solar energy. The Mexico City government
“has issued environmental regulations requiring all businesses
that provide hot water, such as restaurants and gyms, to heat at least
30% of their supplies using solar energy,” says Valdés. As a result, the
number of industries participating in the sector –from manufacturers
to distributors of solar water heating systems– has grown.
Installed capacity is an excellent way to measure the extent
to which the industry has expanded. According to Valdés, there
are now 1.66 million square meters of solar water heaters installed
in Mexico compared to between 250,000 and 300,000
square meters 10 years ago. “We are excited about the future.
The goal of the National Solar Water Heater Program implemented
by the Ministry of Economy (SE) and the National
Commission for Efficient Energy Use (CONAE) is to close 2013
with 2.5 million square meters, while the target for 2020 is 23.5
million square meters.”
The other important niche is “interaction with the government,
which covers alternative methods of capturing solar
energy, like photovoltaic and wind energy systems, both of
which can be hooked up to the electricity grid,” says Valdés,
who is quick to point out that, under Mexican law, electricity
cannot be generated by private entities for sale to other private
entities. “What the law allows you to do is generate your own
electricity and transmit it to the grid in exchange for what you
consume.”
Mexico has 510,000 high energy domestic users, but if they
“simply purchased a photovoltaic system to avoid using electricity
during peak hours, they could save money on their electricity
bills,” says Valdés.
But there are still other niches to explore, like solar-powered
transport systems covering short, local routes of 10 to 15 kilometers,
says Valdés, adding that “large generators connected
to the grid are another area of opportunity, because the price
of photovoltaic electricity is dropping […] we now have a commercial
tariff of 1.30 to 1.40 usd per watt, while rates for thermoelectric
generators are in the region of 1 usd per watt. This
means we are very close to matching conventional rates.”
Nature’s Boons
AMDEE president Leopoldo Rodríguez Olivé believes Mexico
has several competitive advantages in the wind energy industry.
“Aside from regulatory incentives, we have something few other
countries have: places with winds so strong they can generate
from 30% to 100% more electricity than other parts of the
world. This increased generating power compensates for subsidies
and makes Mexico more attractive to investors.”
Furthermore, the country’s “legal and regulatory framework
is considered solid and there are good financing options.”
From the standpoint of the solar energy industry, Alberto
Valdés says that Mexico’s geographical location constitutes its
greatest advantage in terms of solar radiation. In the Northwest
alone, solar radiation can exceed 6 kWh per square meter a day,
while the rest of the country receives an average of 4.5 to 6 kWh.
Other factors that have facilitated the development of the
industry in Mexico include “legislation for the installation of
solar water heating systems, and the possibility of hooking up
to the electricity grid,” says Valdés.
Plus, “we have a Regulatory and Evaluation Committee to
ensure all solar heating systems sold here comply with international
standards.”
Backed by a solid legal framework and government programs,
it seems Mexico’s renewable energy industry is well positioned
to harness the inexhaustible forces of nature and can
look forward to a bright and breezy future. n