POWER March 2013 - 55

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Global Business Reports
POWER MEXICO
of projects too small to count under the
IPP scheme, along with export and import
projects). Despite the lack of subsidies,
the renewables sector has seen good
growth and an inlux of foreign direct investment
(FDI). In 2012, there were 200
plants for renewable power generation
either open or under construction, and
between 2003 and 2012, despite CFE's
hold over the industry, FDI in renewables
reached $6.9 billion. The majority of these
investors have come from Spain, US,
France, Japan, and Denmark, and their
investments center around the states
of Chihuahua, Baja California (which
has strong solar potential), Nuevo León,
Tamaulipas, and Oaxaca (both of which
have strong wind potential).
The Competitive Edge
Renewables have a number of competitive
advantages contributing to investor
interest. In remote areas of Mexico in
which connection to the grid is dificult
and expensive, renewables are cheaper.
In addition, the stability of renewables
and co-generation projects better value
for money than buying directly from CFE.
Co-generation
400 kV Substation Julie - Veracruz I Mexico,
Courtesy of Isolux
and their downward trend with regards
to costs allows for long-term energy planning
in a way that the more volatile prices
of gas make dificult. Lastly, and perhaps
ironically, the very thing that may discourage
the use of renewables for some users
- the CFE tariff subsidies - are also
what can make renewables more attractive
to others. High consumption users
in the manufacturing sector that require
energy during peak hours are heavily
charged and will ind self-supply schemes
Co-generation, as distinct from IPPs, is
being used with success by Mexico's
industries as an alternative to relying
on CFE, whilst nonetheless avoiding direct
competition. The 250-MW Eurus
wind project was developed by Acciona
Energy for CEMEX, a Mexican multinational
cement producer. Grupo Bimbo,
Mexico's main bread producer, is supplying
its plants with energy generated
from a 90MW wind plant in partnership
with Renovalia's subsidiary Desarrollos
Eólicos Mexicanos. Small, private hydropower
projects have also been developed
and represent 292 MW of capacity. Partly
due to private investment and partly due
to CFE's own commitment to the development
of renewables, installed capacity
has increased from 12,092 in 2006
to 14,095 MW. Pedro Pradanos, director
general of Dalkia, a co-generation and energy
eficiency company, explains what
Leading automation technology
Festo feels like home in practically all places we give the automation. Both in the
automation of classic discontinuous industrial processes (Developed step by step) as in
many areas of process automation. Our industry segments global and specic knowledge
let us guarantee to the customer the right products and services and together reach the
desired objective.
Av. Ceylán 3
Col. Tequesquináhuac
54020 Tlalnepantla,
Estado de México
+52 (01) 55 5321 66 00
www.festo.com/mx
March 2013
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POWER March 2013

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