POWER May 2010 - 90

POWER IN MEXICO
Interview with Hon. Georgina Kessel, Secretary of Energy
Thus, the Ministry of Energy and the
Q. Mexico is at a defining moment in
terms of the direction of its electricity
market. What are the main highlights
and initiatives under your mandate?
A. From the beginning of President Calderon's
administration, we have been committed to
ensuring a reliable energy supply, at competitive
prices to meet the consumers' demands,
as stated in the National Development Plan.
In regards to competition, we have designed
a very flexible program allowing
medium-and high-voltage [large industrial]
users to define energy and power
consumption, which can vary from month
to month. This allows them to structure
their energy needs taking into account factors
such as the exchange rate, fuel prices,
and manufacturer's price indexes. This way
the charges are set in nominal prices for a
year, which gives businesses certainty, and
makes planning easier.
Another initiative was the closure of Luz
y Fuerza del Centro, whose operations inhibited
the economic growth in the central
region of Mexico. Everybody knew that the
decentralized agency (LyFC) was in an unsustainable
financial situation.
We have developed two specific priorities
within the sector. The first is using energy
in a more efficient way, making more from
less, thanks to technological advances and
best user practices. To achieve this we have
implemented measures to integrate these
practices into the public sector and to regulate
and promote the private generators.
We have also started programs to renovate
electrical appliances and lighting in Mexican
households, specifically focusing on
the poorest of households.
The second is the diversification of
our energy portfolio, generating electricity
from renewable sources, such as wind
power and water, as well as biomass, solar
energy, and agribusinesses. We have begun
a series of public projects, but also fostered
private involvement.
Q. What vision does the administration
have for the future of the CFE?
A. As we have mentioned, President Calderon
has been committed from the start of
his administration to the National Development
Plan, ensuring a reliable, quality supply
and competitive prices to the energy
supplies that consumers need.
90
Comisión Federal de Electricidad share the
vision of a continuous offer of excellent
services, now for the whole of the country.
Therefore, we will invest in the infrastructure
of LyFC to ensure that the entire area
continues receiving electrical services with
the highest quality standards of CFE.
Q. Mexico has a distinctive structure
whereby the majority of the generation
capacity is in the hands of the state. What
do you believe are the advantages of this
system over a market-based approach?
A. The applicable legal framework in Mexico
hasn't significantly changed since its
inception. It was meant to unify and expand
several electric systems, which were
unconnected and scattered throughout
the country.
Due to this, Mexico has had a high national
electrification rate-96.68% in 2008.
The large unified system that we have in
Mexico speeds up the operation of the transmission
network and the coordination of all
the power plants fueling the network.
Q. What role can IPP's [independent
power producers] play in the Mexican
energy matrix [mix]?
A. In terms of importance for the power
matrix, the IPPs account for roughly 22%
of the effective generation capability of
the national electric industry, generating
32% of the country's power.
The IPPs' relevance has increased in recent
years, with a yearly average increase
of 5.7% in their share of the national generation,
between 2003 and 2008.
Q. Mexico is generally considered to
contain high market potential in energy
generation and has one of the highest
GDP per capita levels in Latin America.
What are the major advantages that
Mexico has over its neighbors in terms
of a premium destination for investment
within the energy sector?
A. Last year we implemented a reform in
the energy sector, introducing a new legal
framework with new advantages and opportunities
that have turned México into a
better destination for investment in different
sources of energy.
In terms of hydrocarbons, we set Petróleos
Mexicanos (PEMEX) on the right path
to become a better, more efficient, transwww.powermag.com
parent
company, with better reporting systems.
Also, PEMEX has a new hiring system,
a more flexible system, which allows it to
provide compensation according to industry
standards, as well as additional cash
bonuses, when the state-owned company
earns greater revenues due to better results
from a project or service.
Regarding electricity, our main achievement
is that we have been able to enhance
the cogeneration and electricity generation
schemes from renewable sources. The new
legislation and our great supply of natural
resources will turn Mexico into an important
destination for investment.
Q. Where do you see the best opportunities
for foreign companies looking to
invest in the Mexico energy sector, and
what advice would you give them?
A. The greatest potential is where I have
already mentioned: hydrocarbons and private
generation, including cogeneration
and renewable sources.
I would recommend investors to be
aware of the opportunities Mexico has to
offer, thanks to its natural resources and
to the hard work of all Mexican people in
order to upgrade its energy sector.
Q. In many countries renewables benefit
from market mechanisms, for example
a price guarantee or subsidy
in order to promote their use. Do you
believe that a measure such as this is
necessary in Mexico?
A. The new legal framework on renewable
sources provides the tools to procure favorable
conditions to promote investment to
benefit from these energy sources.
For instance, we planned the development
of a methodology to gauge the
negative externalities in the generation of
electricity, which we published in recent
months. Through this we intend to integrate
in the cost of electricity the different
hazards its generation causes to society.
Therefore, these data would reduce the
relative price of electricity generated from
renewable sources, compared to that produced
from traditional sources.
Also, the decision to specifically adopt
these instruments from public policies was
made by the Congress. So far these initiatives
have not been contemplated in the
approved expense budget for 2010.
POWER | May 2010
http://www.powermag.com

POWER May 2010

Table of Contents for the Digital Edition of POWER May 2010

Contents
POWER May 2010 - Cover1
POWER May 2010 - Cover2
POWER May 2010 - Contents
POWER May 2010 - 2
POWER May 2010 - 3
POWER May 2010 - 4
POWER May 2010 - 5
POWER May 2010 - 6
POWER May 2010 - 7
POWER May 2010 - 8
POWER May 2010 - 9
POWER May 2010 - 10
POWER May 2010 - 11
POWER May 2010 - 12
POWER May 2010 - 13
POWER May 2010 - 14
POWER May 2010 - 15
POWER May 2010 - 16
POWER May 2010 - 17
POWER May 2010 - 18
POWER May 2010 - 19
POWER May 2010 - 20
POWER May 2010 - 21
POWER May 2010 - 22
POWER May 2010 - 23
POWER May 2010 - 24
POWER May 2010 - 25
POWER May 2010 - 26
POWER May 2010 - 27
POWER May 2010 - 28
POWER May 2010 - 29
POWER May 2010 - 30
POWER May 2010 - 31
POWER May 2010 - 32
POWER May 2010 - 33
POWER May 2010 - 34
POWER May 2010 - 35
POWER May 2010 - 36
POWER May 2010 - 37
POWER May 2010 - 38
POWER May 2010 - 39
POWER May 2010 - 40
POWER May 2010 - 41
POWER May 2010 - 42
POWER May 2010 - 43
POWER May 2010 - 44
POWER May 2010 - 45
POWER May 2010 - 46
POWER May 2010 - 47
POWER May 2010 - 48
POWER May 2010 - 49
POWER May 2010 - 50
POWER May 2010 - 51
POWER May 2010 - 52
POWER May 2010 - 53
POWER May 2010 - 54
POWER May 2010 - 55
POWER May 2010 - 56
POWER May 2010 - 57
POWER May 2010 - 58
POWER May 2010 - 59
POWER May 2010 - 60
POWER May 2010 - 61
POWER May 2010 - 62
POWER May 2010 - 63
POWER May 2010 - 64
POWER May 2010 - 65
POWER May 2010 - 66
POWER May 2010 - 67
POWER May 2010 - 68
POWER May 2010 - 69
POWER May 2010 - 70
POWER May 2010 - 71
POWER May 2010 - 72
POWER May 2010 - 73
POWER May 2010 - 74
POWER May 2010 - 75
POWER May 2010 - 76
POWER May 2010 - 77
POWER May 2010 - 78
POWER May 2010 - 79
POWER May 2010 - 80
POWER May 2010 - 81
POWER May 2010 - 82
POWER May 2010 - 83
POWER May 2010 - 84
POWER May 2010 - 85
POWER May 2010 - 86
POWER May 2010 - 87
POWER May 2010 - 88
POWER May 2010 - 89
POWER May 2010 - 90
POWER May 2010 - 91
POWER May 2010 - 92
POWER May 2010 - 93
POWER May 2010 - 94
POWER May 2010 - 95
POWER May 2010 - 96
POWER May 2010 - 97
POWER May 2010 - 98
POWER May 2010 - 99
POWER May 2010 - 100
POWER May 2010 - 101
POWER May 2010 - 102
POWER May 2010 - 103
POWER May 2010 - 104
POWER May 2010 - 105
POWER May 2010 - 106
POWER May 2010 - 107
POWER May 2010 - 108
POWER May 2010 - 109
POWER May 2010 - 110
POWER May 2010 - 111
POWER May 2010 - 112
POWER May 2010 - 113
POWER May 2010 - 114
POWER May 2010 - 115
POWER May 2010 - 116
POWER May 2010 - 117
POWER May 2010 - 118
POWER May 2010 - 119
POWER May 2010 - 120
POWER May 2010 - 121
POWER May 2010 - 122
POWER May 2010 - 123
POWER May 2010 - 124
POWER May 2010 - 125
POWER May 2010 - 126
POWER May 2010 - 127
POWER May 2010 - 128
POWER May 2010 - 129
POWER May 2010 - 130
POWER May 2010 - 131
POWER May 2010 - 132
POWER May 2010 - 133
POWER May 2010 - 134
POWER May 2010 - 135
POWER May 2010 - 136
POWER May 2010 - Cover3
POWER May 2010 - Cover4
https://www.nxtbook.com/accessintelligence/POWER/pwr_march-2024
https://www.nxtbook.com/accessintelligence/POWER/pwr_february-2024
https://www.nxtbook.com/accessintelligence/POWER/pwr_january-2024
https://www.nxtbook.com/accessintelligence/POWER/pwr_december-2023
https://www.nxtbook.com/accessintelligence/POWER/pwr_november-2023
https://www.nxtbook.com/accessintelligence/POWER/power-october-2023
https://www.nxtbook.com/accessintelligence/POWER/re-tech-supp-to-power-september-2023
https://www.nxtbook.com/accessintelligence/POWER/power-september-2023
https://www.nxtbook.com/accessintelligence/POWER/power-and-re-tech-supp-september-2023
https://www.nxtbook.com/accessintelligence/POWER/power-august-2023
https://www.nxtbook.com/accessintelligence/POWER/power-july-2023
https://www.nxtbook.com/accessintelligence/POWER/power-june-2023
https://www.nxtbook.com/accessintelligence/POWER/power-may-2023
https://www.nxtbook.com/accessintelligence/POWER/power-april-2023
https://www.nxtbook.com/accessintelligence/POWER/power-march-2023
https://www.nxtbook.com/accessintelligence/POWER/power-february-2023
https://www.nxtbook.com/accessintelligence/POWER/power-january-2023
https://www.nxtbook.com/accessintelligence/POWER/power-december-2022
https://www.nxtbook.com/accessintelligence/POWER/power-november-2022
https://www.nxtbook.com/accessintelligence/POWER/Power-October-2022-140th-Anniversary-Supp
https://www.nxtbook.com/accessintelligence/POWER/Power-October-2022-and-Anniversary-Supp
https://www.nxtbook.com/accessintelligence/POWER/power-and-re-tech-supp-september-2022
https://www.nxtbook.com/accessintelligence/POWER/power-september-2022
https://www.nxtbook.com/accessintelligence/POWER/power-august-2022
https://www.nxtbook.com/accessintelligence/POWER/Power-July-2022-Intl
https://www.nxtbook.com/accessintelligence/POWER/power-july-2022
https://www.nxtbook.com/accessintelligence/POWER/power-june-2022-intl
https://www.nxtbook.com/accessintelligence/POWER/power-june-2022
https://www.nxtbook.com/accessintelligence/POWER/power-may-2022
https://www.nxtbook.com/accessintelligence/POWER/power-may-2022-intl
https://www.nxtbook.com/accessintelligence/POWER/power-april-2022
https://www.nxtbook.com/accessintelligence/POWER/Power-April-2022-Intl
https://www.nxtbook.com/accessintelligence/POWER/power-march-2022
https://www.nxtbook.com/accessintelligence/POWER/power-february-2022
https://www.nxtbook.com/accessintelligence/POWER/power-january-2022
https://www.nxtbook.com/accessintelligence/POWER/power-december-2021
https://www.nxtbook.com/accessintelligence/POWER/power-top-plants-supp-december-2021
https://www.nxtbook.com/accessintelligence/POWER/power-november-2021
https://www.nxtbook.com/accessintelligence/POWER/power-october-2021
https://www.nxtbook.com/accessintelligence/POWER/power-september-2021
https://www.nxtbook.com/accessintelligence/POWER/power-august-2021
https://www.nxtbook.com/accessintelligence/POWER/power-july-2021
https://www.nxtbook.com/accessintelligence/POWER/power-june-2021
https://www.nxtbook.com/accessintelligence/POWER/power-may-2021
https://www.nxtbook.com/accessintelligence/POWER/power-april-2021
https://www.nxtbook.com/accessintelligence/POWER/power-march-2021
https://www.nxtbook.com/accessintelligence/POWER/power-february-2021
https://www.nxtbook.com/accessintelligence/POWER/power-january-2021
https://www.nxtbook.com/accessintelligence/POWER/power-december-2020
https://www.nxtbook.com/accessintelligence/POWER/power-november-2020
https://www.nxtbook.com/accessintelligence/POWER/power-october-2020
https://www.nxtbook.com/accessintelligence/POWER/power-september-2020
https://www.nxtbook.com/accessintelligence/POWER/power-august-2020
https://www.nxtbook.com/accessintelligence/POWER/power-july-2020
https://www.nxtbook.com/accessintelligence/POWER/power-june-2020
https://www.nxtbook.com/accessintelligence/POWER/power-may-2020
https://www.nxtbook.com/accessintelligence/POWER/power-april-2020
https://www.nxtbook.com/accessintelligence/POWER/power-march-2020
https://www.nxtbook.com/accessintelligence/POWER/power-february-2020
https://www.nxtbook.com/accessintelligence/POWER/power-january-2020
https://www.nxtbook.com/accessintelligence/POWER/power-december-2019
https://www.nxtbook.com/accessintelligence/POWER/power-november-2019
https://www.nxtbook.com/accessintelligence/POWER/power-october-2019
https://www.nxtbook.com/accessintelligence/POWER/power-september-2019
https://www.nxtbook.com/accessintelligence/POWER/power-august-2019
https://www.nxtbook.com/accessintelligence/POWER/power-july-2019
https://www.nxtbook.com/accessintelligence/POWER/power-june-2019
https://www.nxtbook.com/accessintelligence/POWER/power-may-2019
https://www.nxtbook.com/accessintelligence/POWER/power-april-2019
https://www.nxtbook.com/accessintelligence/POWER/power-march-2019
https://www.nxtbook.com/accessintelligence/POWER/power-february-2019
https://www.nxtbook.com/accessintelligence/POWER/power-january-2019
https://www.nxtbook.com/accessintelligence/POWER/power-december-2018
https://www.nxtbook.com/accessintelligence/POWER/power-november-2018
https://www.nxtbook.com/accessintelligence/POWER/power-october-2018
https://www.nxtbook.com/accessintelligence/POWER/power-september-2018
https://www.nxtbook.com/accessintelligence/POWER/power-august-2018
https://www.nxtbook.com/accessintelligence/POWER/power-july-2018
https://www.nxtbook.com/accessintelligence/POWER/power-june-2018
https://www.nxtbook.com/accessintelligence/POWER/power-may-2018
https://www.nxtbook.com/accessintelligence/POWER/power-april-2018
https://www.nxtbook.com/accessintelligence/POWER/power-march-2018
https://www.nxtbook.com/accessintelligence/POWER/power-february-2018
https://www.nxtbook.com/accessintelligence/POWER/power-january-2018
https://www.nxtbook.com/accessintelligence/POWER/power-december-2017
https://www.nxtbook.com/accessintelligence/POWER/power-november-2017
https://www.nxtbook.com/accessintelligence/POWER/power-october-2017
https://www.nxtbook.com/accessintelligence/POWER/power-september-2017
https://www.nxtbook.com/accessintelligence/POWER/power-august-2017
https://www.nxtbook.com/accessintelligence/POWER/power-july-2017
https://www.nxtbook.com/accessintelligence/POWER/power-june-2017
https://www.nxtbook.com/accessintelligence/POWER/power-may-2017
https://www.nxtbook.com/accessintelligence/POWER/power-april-2017
https://www.nxtbook.com/accessintelligence/POWER/power-march-2017
https://www.nxtbook.com/accessintelligence/POWER/power-february-2017
https://www.nxtbook.com/accessintelligence/POWER/power-january-2017
https://www.nxtbook.com/accessintelligence/POWER/power-december-2016
https://www.nxtbook.com/accessintelligence/POWER/power-november-2016
https://www.nxtbook.com/accessintelligence/POWER/power-october-2016
https://www.nxtbook.com/accessintelligence/POWER/power-september-2016
https://www.nxtbook.com/accessintelligence/POWER/power-august-2016
https://www.nxtbook.com/accessintelligence/POWER/power-july-2016
https://www.nxtbook.com/accessintelligence/POWER/power-june-2016
https://www.nxtbook.com/accessintelligence/POWER/power-may-2016
https://www.nxtbook.com/accessintelligence/POWER/power-april-2016
https://www.nxtbook.com/accessintelligence/POWER/power-march-2016
https://www.nxtbook.com/accessintelligence/POWER/power-february-2016
https://www.nxtbook.com/accessintelligence/POWER/power-january-2016
https://www.nxtbook.com/accessintelligence/POWER/power-december-2015
https://www.nxtbook.com/accessintelligence/POWER/power-november-2015
https://www.nxtbook.com/accessintelligence/POWER/power-october-2015
https://www.nxtbook.com/accessintelligence/POWER/power-september-2015
https://www.nxtbook.com/accessintelligence/POWER/power-august-2015
https://www.nxtbook.com/accessintelligence/POWER/power-july-2015
https://www.nxtbook.com/accessintelligence/POWER/power-june-2015
https://www.nxtbook.com/accessintelligence/POWER/power-may-2015
https://www.nxtbook.com/accessintelligence/POWER/power-april-2015
https://www.nxtbook.com/accessintelligence/POWER/power-march-2015
https://www.nxtbook.com/accessintelligence/POWER/power-february-2015
https://www.nxtbook.com/accessintelligence/POWER/power-january-2015
https://www.nxtbook.com/accessintelligence/POWER/power-december-2014
https://www.nxtbook.com/accessintelligence/POWER/power-november-2014
https://www.nxtbook.com/accessintelligence/POWER/power-october-2014
https://www.nxtbook.com/accessintelligence/POWER/power-september-2014
https://www.nxtbook.com/accessintelligence/POWER/power-august-2014
https://www.nxtbook.com/accessintelligence/POWER/power-july-2014
https://www.nxtbook.com/accessintelligence/POWER/power-june-2014
https://www.nxtbook.com/accessintelligence/POWER/power-may-2014
https://www.nxtbook.com/accessintelligence/POWER/power-april-2014
https://www.nxtbook.com/accessintelligence/POWER/power-march-2014
https://www.nxtbook.com/accessintelligence/POWER/power-february-2014
https://www.nxtbook.com/accessintelligence/POWER/power-january-2014
https://www.nxtbook.com/accessintelligence/POWER/power-december-2013
https://www.nxtbook.com/accessintelligence/POWER/power-november-2013
https://www.nxtbook.com/accessintelligence/POWER/power-october-2013
https://www.nxtbook.com/accessintelligence/POWER/power-september-2013
https://www.nxtbook.com/accessintelligence/POWER/power-august-2013
https://www.nxtbook.com/accessintelligence/POWER/power-july-2013
https://www.nxtbook.com/accessintelligence/POWER/power-june-2013
https://www.nxtbook.com/accessintelligence/POWER/power-may-2013
https://www.nxtbook.com/accessintelligence/POWER/power-april-2013
https://www.nxtbook.com/accessintelligence/POWER/power-march-2013
https://www.nxtbook.com/accessintelligence/POWER/power-february-2013
https://www.nxtbook.com/accessintelligence/POWER/power-january-2013
https://www.nxtbook.com/accessintelligence/POWER/power-december-2012
https://www.nxtbook.com/accessintelligence/POWER/power-november-2012
https://www.nxtbook.com/accessintelligence/POWER/power-october-2012
https://www.nxtbook.com/accessintelligence/POWER/power-september-2012
https://www.nxtbook.com/accessintelligence/POWER/power-august-2012
https://www.nxtbook.com/accessintelligence/POWER/power-july-2012
https://www.nxtbook.com/accessintelligence/POWER/power-june-2012
https://www.nxtbook.com/accessintelligence/POWER/power-may-2012
https://www.nxtbook.com/accessintelligence/POWER/power-april-2012
https://www.nxtbook.com/accessintelligence/POWER/power-march-2012
https://www.nxtbook.com/accessintelligence/POWER/power-february-2012
https://www.nxtbook.com/accessintelligence/POWER/power-january-2012
https://www.nxtbook.com/accessintelligence/POWER/power-november-2011
https://www.nxtbook.com/accessintelligence/POWER/power-october-2011
https://www.nxtbook.com/accessintelligence/POWER/power-september-2011
https://www.nxtbook.com/accessintelligence/POWER/power-august-2011
https://www.nxtbook.com/accessintelligence/POWER/power-july-2011
https://www.nxtbook.com/accessintelligence/POWER/power-june-2011
https://www.nxtbook.com/accessintelligence/POWER/power-may-2011
https://www.nxtbook.com/accessintelligence/POWER/power-april-2011
https://www.nxtbook.com/accessintelligence/POWER/power-march-2011
https://www.nxtbook.com/accessintelligence/POWER/power-february-2011
https://www.nxtbook.com/accessintelligence/POWER/power-january-2011
https://www.nxtbook.com/accessintelligence/POWER/power-december-2010
https://www.nxtbook.com/accessintelligence/POWER/power-november-2010
https://www.nxtbook.com/accessintelligence/POWER/power-october-2010
https://www.nxtbook.com/accessintelligence/POWER/power-september-2010
https://www.nxtbook.com/accessintelligence/POWER/power-august-2010
https://www.nxtbook.com/accessintelligence/POWER/power-july-2010
https://www.nxtbook.com/accessintelligence/POWER/power-june-2010
https://www.nxtbook.com/accessintelligence/POWER/power-may-2010
https://www.nxtbookmedia.com