POWER March 2013 - 57

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POWER MEXICO
Dalkia can offer to its clients: " Co-generation,
which we regularly get involved in, is
one of the main solutions available in the
Mexican energy market and can generate
electrical, thermal, and/or other energies.
Dalkia's co-generation projects represent
nearly 5000 MW of installed capacity
worldwide. In Mexico, we are currently
developing a co-generation project in
Queretaro with an industrial client. Here,
we are installing the 2 MW CHP system
and will maintain and operate it for the
next seven years. This will allow the client
to achieve more than 30% in savings.
The project started off with an energy
analysis, after which we presented a variety
of options and solutions to the client.
We recommended one, and developed it.
We are not committed to a single technology;
we seek a comprehensive tailormade
solution for each case and each client
in particular. "
Rushing Wind
Wind power potential in Mexico is estimated
at 71,000 MW and in the past
few years has seen strong growth. Due
to the meteoric conditions, wind is the
strongest of all the renewables in Mexico.
Adrian Katzew, general manager for
Vestas Mexico, Central America and the
Caribbean, one of the market leaders of
wind turbine manufacturing in the world,
details the factors that have drawn Vestas
and similar companies to Mexico: " The
move away from subsidies for renewables
in Europe, along with the expiry of
the production tax credits in the US next
year, has shifted demand from mature
markets to emerging markets. It is a
phenomenon that is extremely interesting;
growing up in Mexico, I would have
never thought that Mexico would become
a leading, world-class example of macroeconomic
and inancial management, and
yet here we are. Mexico is attracting foreign
investment and we are seeing a new
wind market emerge. Wind power today
from a cost point of view is more attractive
than any other alternative; there are
no subsidies, and yet wind power is succeeding
in Latin America and the Caribbean.
In addition, the dificulties of inancial
institutions in Europe has resulted in
a dificulty in inancing projects, but the
role of multilateral agencies in supporting
development in emerging markets allows
the inancing of projects. As a result, it
March 2013
is easier to inance projects in emerging
markets, which is fueling our growth. In
Mexico, CFE and self-consumers are investing
in wind power because they have
found that it is more competitive. "
Solar's First Steps
Solar, in contrast to wind, has yet to be
developed. The cuts in subsidies in Europe
have caused a glut of solar panels
that has pushed the price of equipment
down, and the attractiveness of the technology
up. As a result, solar companies
typically report a year-on-year growth of
up to 100%, though this percentage is
taken from a very low baseline and the
market is
still immature. The potential,
however, is very strong. Mexico is located
across the 'Sun Belt' and is among the
countries with the highest solar power
generation potential worldwide. The solar
radiation potential in the northwest
of the country can exceed 6 kWh/m2
per day. In addition, Mexico is the main
supplier of photovoltaic solar modules in
Latin America, with a production capacity
of more than 276 MW, which also opens
up opportunities to supply the near-by
US market. " Latin America overall, and
Mexico in particular, has declared its interest
in this source of renewable energy
and there is a lot of growth potential in
this area. Taking this into account as well
as the global decrease in the price of the
panels, we believe that 2013 will be the
year that will offer many possibilities for
the photovoltaic sector. However, in order
for the photovoltaic developments to
be proitable we need to make sure that
the tariffs offered in the Mexican market
are competitive not only with respect to
the ordinary sources of energy but also
with respect to the wind power tariffs, "
says Miguel Angel Alonso Rubio, director
general of the Mexican chapter of
Spanish renewables giant Acciona.
Yes(ca) to Hydro-power
Hydroelectric power is, of all renewables,
the most developed and widely accepted
as competitive. With a hydroelectric potential
of 53,000 MW, Mexico conirmed
its commitment to hydropower with the
opening of La Yesca, arguably the most
important infrastructure project of the
Calderon administration. Built by construction
irm ICA, La Yesca has a capacity
to hold 2.39 billion square meters of
water and an installed capacity of 750
MW. CFE's ambitions cannot be realized
without private sector help. Raul Casas,
service and rehabilitation manager at Andritz
Hydro, an international hydropower
equipment design and manufacturing
company, describes the context of the
market: " The Mexican market is not a
ixed volume market; it is cyclical and depends
on the political situation. It is dificult
for CFE to maintain a well-deined
agenda of scheduled projects. CFE is currently
trying to deine the next big project
after La Yesca. We work mainly with the
operational side of CFE, and the coordination
of hydro to improve, maintain, and
enhance, the performance of existing
hydroelectric plants. "
Geothermal and Biogas
Projects of the scale of La Yesca are not
conined to hydropower however; at
750MW, the Cerro Prieto Geothermal
Power Station is the largest of its kind in
the world and geothermal energy potential
in Mexico is greater than 40,000 MW.
Biomass is also a rapidly growing sector
that has a number of attractive opportunities,
many of which are in the Veracruz
area. Gaston Aragon of CAT explains:
" Opportunities are in the north where
there are large ranches with cows and
horses which allow us to produce energy
from the waste using biogas processes.
In this way, companies can reduce
their energy bill. It is an emerging market
in the whole of Latin America that
consists of natural waste that is subject
to anaerobic digestion, which as a result
produces biogas that can be used to
power motors. A whole technology must
be built around maintaining a stable environment
so that the bacteria do not die;
temperature and food supply must always
be kept optimal to maintain the levels of
biogas produced. "
The Forks in the Road
The exact breakdown of the projected
35% of clean energies has been split by
SENER into three possibilities scenarios:
Firstly - and arguably the easiest way of
achieving the 2026 aim - is to develop
a matrix with a focus on nuclear, which
would account for 18.1% of Mexico's energy.
Vicente Estrada-Cajigal, president
of the National Solar Energy Association
(ANES) disapproves: " The National EnGlobal
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POWER March 2013

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