Electricity Overview. March 2008

Transcripción

1 Electricity Overview Energy Sector Programme March 2008

2 EVOLUTION OF GENERATION CAPACITY ,028 MW ,289 MW

3 ANNUAL INVESTMENT REQUIREMENTS Millions of U.S. Dollars Years

4 ELECTRICITY SALES FORECASTS Sells + Self Supply ARG 4.9% ARG 4.3% ARG 5.1% Public Service Sells ARG 3.7% ARG 2.4% ARG 10.3% Self Supply

5 ENERGY SECTOR PROGRAMME Objective II.2. Balance the portfolio of primary energy sources Strategy II Strengthen reliability and security of supply of energy sources for electricity through the diversification of technologies and generation sources, and to foster, through specific mechanisms, the use of energy sources that do not increase green-house gas emissions Strategy II Analyze the feasibility of increasing electricity generation with nuclear technology, with strict use of international safety standards and operative reliability, contributing to the sustainable development of the country. Strategy II Foster electricity generation projects under the modalities allowed by the Public Electricity Service Act in which the social and private sectors, as well as state and municipal governments, are allowed to participate.

6 ENERGY SECTOR PROGRAMME Objective III.2. Foster the use of renewable sources of energy and biofuels that are economically, environmentally and socially sound. Strategy III Develop the National Renewable Energy Programme Strategy III To propose public policies that drive the development and application of technologies that use renewable sources of energy. Strategy III Strengthen and consolidate the actions of the Federal Government dedicated to promote renewable energies. Strategy III Develop financing schemes that increase the use of renewable energy sources. Strategy III Increase electricity coverage in remote communities, using renewable energy sources in those cases in which it is neither technically nor economically feasible to connect them to the grid. Strategy III Support research activities and the development of human resources on the subjects concerning renewable energy.

7 REGULATORY FRAMEWORK OF THE ELECTRICITY SECTOR In Mexico, Constitutional provisions set the legal framework for the electricity industry. Article 27 establishes that generation, transmission, distribution, and supply of electricity to be used as public service is exclusively the federal government s responsibility. Article 28 further establishes that all strategic activities carried out by the federal government shall not be considered a monopoly. Article 25 provides that the federal government is empowered to own and operate public companies with the exclusive purpose of implementing identified strategic activities like the electricity sector. Despite the strong presence of the federal government, there are opportunities for private sector involvement in the electricity sector. In December 1992, the Public Electricity Service Act (Ley del Servicio Público de Energía Eléctrica or LSPEE) was amended to allow private participation in generation activities. Article 3 of this Act lists five areas that are not considered as public service and that are open to the private sector participation: 1. Self supply 2. Cogeneration 3. Independent Power Producers 4. Imports and exports 5. Small-scale generation

8 SELF-SUPPLY IN MEXICO We can see in the graph that a diversity of industries are now permit-holders. When measured by installed capacity, PEMEX is the most important permit holder, followed by the service sector (Telmex, Walmart etc). SELF-SUPPLY PERMITS GRANTED (Mw percentage by sector) Others 4% Food and Sugar Industry 7% Various Industries 27% Total: 6,062 Mw Oil and Refined Products 25% As a percentage of total Mw by sector, the cement industry is the most important, with 8 % of the total, with 500 Mws of capacity in two permits. Services 12% Cement 8% Mining 6% Municipal 6% Steel 5%

9 GENERATION PERMITS WITH RENEWABLES To this date, the Energy Regulatory Commission has granted a total of 79 permits for electricity generation based on renewable sources which add up to a total capacity of 1,928 MW. Of this permits, 61 are in operation with an installed capacity of 532 MW. Authorized Capacity for Self-Supply Supply (MW) Project Status In Development Total Minihidro Operation Wind - 1, ,252.5 Biomass Biogas Total , ,928.2 Biomass Biogas 20.3 Minihidro Wind

10 MINIHYDRO PROYECTS OBJECTIVE To diversify the portfolio of energy sources through the promotion of yet to be exploited resources To show a general perspective of the feasibility of minihydro projects in Mexico: To analyze the administrative procedures at the federal, state and municipal level, and to detect those that are critical or that lengthen the regulatory process. DESCRIPTION To clarify and simplify the regulatory red tape to investors To promote the technical information of the state-owned utility (CFE) about the hydrological potential of the country for development of mini-hydroelectric projects To gather experiences from other countries and to exchange information on investment opportunities.

11 NATIONAL HYDROELECTRIC POTENTIAL* Level Projects (number number) Installed power MW Medium anual Generation GWh Identification ,934 64,766 Grand vision 116 7,890 18,720 Prefeasibility 33 4,411 13,395 Feasibility 27 5,001 12,317 Design 2 1,650 2,581 Construction ,228 Total , ,613 * Information provided by CFE.

12 SITE IDENTIFICATION CFE has identified around 500 potential places in those that can be developed hydroelectric projects, of them 112 correspond to minihydro. STATE/REGION PROJECTS SELECTED OF THE CFE CATALOGUE LEVEL OF STUDY NUMBER OF PROJECTS AVERAGE POWER (MW) INSTALABLE POWER (MW) AVERAGE ANNUAL GENERATION (GWh) DIFFERENTIAL OF LEVEL (METERS) CHIHUAHUA GRAN VISION DURANGO GRAN VISION , ,636.0 DURANGO - SINALOA GRAN VISION GUERRERO GRAN VISION , , ,306.8 HIDALGO GRAN VISION , ,920.0 JALISCO GRAN VISION JALISCO - NAYARIT GRAN VISION NAYARIT GRAN VISION NAYARIT - DURANGO GRAN VISION NAYARIT - JALISCO GRAN VISION NUEVO LEON FACTIBILIDAD OAXACA GRAN VISION , ,125.0 PUEBLA GRAN VISION , ,678.0 QUERETARO GRAN VISION SAN LUIS POTOSI GRAN VISION SONORA 5 FACT. Y 5 G. VISION , TAMAULIPAS GRAN VISION VERACRUZ GRAN VISION , ,667.0 VERACRUZ - PUEBLA GRAN VISION TOTAL 112 1, , ,042.2 Fuente: Fuente CFE

13 STATES WHERE POTENTIAL PROJECTS ARE LOCATED Sonora 10 sites 182 Mw Avg. Veracruz 15 sites 184 Mw Avg. Sixty-six sites out of one hundred and twelve are located in these five states The state of Guerrero is the one with the largest identified potential, with sixteeen sites that represent 16.3% of total averaga capacity in the catalogue Durango 9 sites 188 Mw Avg. Guerrero 16 sitios 298 Mw Pot. Media Puebla 16 sites 232 Mw Avg The state of Puebla has also 16 identified sites, whose capacity represents 12.7% of the total. Dirección General de Generación, Conducción y Transformación de Energía Eléctrica

14 PERMITS OF MINIHYDRO PROJECTS GRANTED At the moment 19 permits have been granted by the CRE for electricity generation through minihydro projects with a total capacity of MW. Additionally 32 power stations of CFE and 11 power stations of LFC, with a capacity of MW that they can be considered minihydro are in operation úm. PERMISIO ARIO MODALIDAD FECHA DE OTORGAMIE TO CAP. AUTORIZADA (MW) ACTIVIDAD ECO OMICA TIPO DE PLA TA (TEC OLOGIA) ESTADO ACTUAL UBICACIO DE LA PLA TA 7 PAPELERA VERACRUZANA, S.A. DE C.V. AUT. 01/03/ PAPELERO TURBINA HIDRAULICA EN OPERACION VERACRUZ 75 GENERADORA ELECTRICA SAN RAFAEL, S. DE R.L. DE C.V. AUT. 11/11/ MUNICIPAL TURBINA HIDRAULICA EN CONSTRUCCION NAYARIT 82 MEXICANA DE HIDROELECTRICIDAD MEXHIDRO, S. DE R.L. DE C.V. AUT. 15/01/ SIDERURGICO TURBINA HIDRAULICA EN OPERACION GUERRERO 97 ELECTRICIDAD DEL ISTMO, S. DE R. L. DE C.V. AUT. 27/08/ TEXTIL TURBINA HIDRAULICA EN CONSTRUCCION OAXACA 98 HIDROELECTRICIDAD DEL PACIFICO, S.A. DE C.V. AUT. 27/08/ MAQUILADOR TURBINA HIDRAULICA EN OPERACION JALISCO 101 HIDROELECTRICAS VIRITA, S.A. DE C.V. AUT. 10/09/ TEXTIL TURBINA HIDRAULICA EN OPERACION VERACRUZ 142 MEXICANA DE ELECTROGENERACION, S.A. DE C.V., PROYECTO TRIGOMIL AUT. 08/11/ MANUFACTURERO TURBINA HIDRAULICA EN CONSTRUCCION JALISCO 143 MEXICANA DE ELECTROGENERACION, S.A. DE C.V., PROYECTO TACOTAN AUT. 08/11/ MANUFACTURERO TURBINA HIDRAULICA EN CONSTRUCCION JALISCO 178 PROVEEDORA DE ELECTRICIDAD DE OCCIDENTE, S.A. DE C.V. AUT. 27/01/ MUNICIPAL TURBINA HIDRAULICA EN OPERACION JALISCO 179 PROVEEDORA NACIONAL DE ELECTRICIDAD, S.A. DE C.V. AUT. 12/03/ MUNICIPAL TURBINA HIDRAULICA EN CONSTRUCCION JALISCO 202 ENERGIA NACIONAL, S.A. DE C.V. AUT. 28/08/ INDUST. DIVERSAS TURBINA HIDRAULICA EN CONSTRUCCION PUEBLA 445 HIDROELÉCTRICA CAJÓN DE PEÑA, S.A. DE C.V. AUT. 16/03/ SERVICIOS TURBINA HIDRAULICA EN CONSTRUCCION JALISCO 510 COMPAÑÍA DE ENERGÍA MEXICANA, S. A. DE C. V. AUT. 16/01/ INDUST. DIVERSAS TURBINA HIDRAULICA EN CONSTRUCCION PUEBLA 524 PROCESAMIENTO ENERGÉTICO MEXICANO, S. A. DE C. V. AUT. 22/02/ INDUST. DIVERSAS TURBINA HIDRAULICA EN CONSTRUCCION VERACRUZ 556 ENERGÍA ESCALONA, S. DE R. L. de C. V. AUT. 10/05/ INDUST. DIVERSAS TURBINA HIDRAULICA EN CONSTRUCCION VERACRUZ 565 HIDRORIZABA II, S. A. DE C. V. AUT. 24/05/ INDUST. DIVERSAS TURBINA HIDRAULICA EN OPERACION VERACRUZ 592 HIDRORIZABA, S. A. DE C. V. AUT. 05/07/ INDUST. DIVERSAS TURBINA HIDRAULICA EN OPERACION VERACRUZ 615 HIDROELÉCTRICA ARCO IRIS, S. A. DE C. V. AUT. 23/08/ INDUST. DIVERSAS TURBINA HIDRAULICA EN CONSTRUCCION JALISCO 690 COMISION ESTATAL DE SERVICIOS PUBLICOS DE TIJUANA U.P.C. 11/12/ MUNICIPAL TURBINA HIDRAULICA INACTIVO BAJA CALIFORNIA Fuente: Fuente CRE

15 CUTTING THROUGH THE RED TAPE To carry out a minihydro project in Mexico, a number of government formalities at the federal and municipal level have to be carried out. Once approved, transmission and interconnection agreements should be signed with the CFE and the CRE, what means 31 steps, in a estimated time of 361 working days, with an approximate cost of 20 thousand US dollars. Time of administration of a mini-hydroelectric plant Months (working days) Governmental Institution CFE SEMARNAT CNA CRE MUNICIPIOS * Notes This cost varies according to the states and municipalities and applicable effective laws. The determination of the time of each step, one carries out based on the maximum terms of answer specified by each dependence It doesn't include times of civil work

16 MAIN OBSTACLES Main Barriers The factors that inhibit the development of the minihydro projects in Mexico are: The lack of plans and clear goals on this topic The lack of information, education and training. The lack of financing or fiscal incentives. Difficulty of getting projects off the ground due to lack of seed money The lengthy administrative processes and/or lack of institutional coordination. Social acceptance due to insufficient information provided to communities. Technical issues (interconnection)

17 SUCCESS STORY Acquisition of Inelec On December 6, 2007, Enel Investment Holding completed the acquisition of 100% of Inelec from SLAP II Luxembourg SARL (an entity run by Conduit Capital Partners LLC, a private equity firm based in New York, and by the Grupo Qualita/Comexhidro) for a total of $174 million (about 119 million). Inelec has three hydroelectric plants in Mexico with an installed capacity of 52 MW, located in the Mexican states of Michoacan, Jalisco and Guerrero. Operating downstream of existing irrigation dams, they generate power with very low environmental impact. The plants, which were built with the most advanced modern technology, began operations between 2003 and ENI Annual Report 2007