Energy_Biomass

Market Overview

Renewable energy technologies are in rapid development in Mexico. The federal government, through the Energy Regulatory Commission (CRE) has promoted the installation of more than 117 renewable energy projects since the administration of former president Calderon. From 2000 to 2010, hydrothermal, geothermal and wind power plants construction has increased at an 11% rate; while energy projects based on petrochemicals have decreased by 21%. The overall spread of current power generating facilities in Mexico can be said to be at 81% based on petrochemical, 11.2% based on hydroelectric plants, 4.5% is  nuclear and 3% geothermal.

Mexico’s renewable energy generating capacity has grown exponentially from levels of 45 Gigawatt per hour in 2006 to 78,442 Gigawatt per hour in 2010 (including that of independent producers). Today, 26% of national demand is produced by renewable sources and most of them are connected to the grid managed by the large federal enterprise CFE (Federal Power Commission).

Market Outlook

Biomass and solar projects have very small presence in the Mexican market, mainly due to their costs and generating power. As a result, these are mostly utilized for self-supply purposes and in most cases, do not get connected to the grid. 

The federal government through, POISE (Program for Infrastructure of the Electric Sector) promotes these type of self-generating projects and forecasts that a total generating capacity in this segment will reach the 9,388 megawatts by 2016.

 Pork breeding and cattle ranches in Mexico, have found a fortune saving opportunity with their own processing of animal manure in their biomass power plants. Their power expenses have been reduced as much as 90%.

 There are currently more than 300 biomass plants operating in Mexico where the number of potential users amount to over 7,000 which qualify in size as candidates for a biomass plant. SAGARPA (the Federal Agriculture Agency) leads all efforts in creating self-sufficient operations and facilitate the financial resources to the Mexican producer thorough their credit instrument Fondo de Garantia Verde (Green Guarantee Fund) financing up to 40% of the project.

 Mexico’s renewable energy sector is providing fertile ground for additional electric infrastructure. Large contractors are gaining the large projects mostly due to their close government relationships and local presence in addition to a strong link with foreign suppliers for large scale projects.

 For Reference visit:

http://www.sagarpa.gob.mx/

http://www.renovablesverdes.com

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