Mexico Mexico

Delegate: Dr. Sergio Alcocer , Instituto de Ingeniería UNAM. Alternate: Dr. Gerardo Hiriart L., Energías Alternas, Estudios y Proyectos SA de CV

The summary in this section was provided Sergio M. Alcocer & Rosalba Cruz (Universidad Nacional Autonoma de Mexico) and Gerardo Hiriart (Energias Alternas Estudios y Proyectos SA de CV)

In recent years, Mexico has implemented major changes in the energy sector, favouring renewable energies. These changes resulted from the integration of a new legal framework towards energy transition and the production and use of cleaner energy. 

The country has significant potential for ocean energy due to the large coastline, primarily in the Upper Gulf of California: however, in Mexico fossil fuels are still the most important sources for power generation. Several documents denote that the use of clean technologies should increase and targeted reaching a production of 35% of power generation from clean energy, as in the case of the National Energy Strategy, the Electricity Sector Outlook and the Renewable Energy Outlook.

Moreover, there are several programmes that encourage the use of renewable energies, through funding for research projects that promote the development, use and application of clean technologies, an example is the Fund for Energy Sustainability, the Fund for Energy Transition and the Sustainable Use of Energy and the different funds for Energy Efficiency and Renewable Energy of international type.

Mexico does not have a specific policy for ocean energy generation, but there are various mechanisms for the regulation of energy that determine the type of renewable sources that are suitable for power generation, such as ocean energy. The Law on the Use of Renewable Energy and Energy Transition Financing refers to the use of ocean energy in its different ways to generate energy. For its part, the National Water Act refers to the use of national waters for various uses including power generation. 

Currently and although Mexico has no pilot or commercial ocean energy generation projects, some studies and pilot projects are being conducted by the Federal Commission of Energy (CFE), the National University of Mexico (UNAM) and other institutions to demonstrate the feasibility for harnessing ocean energy, as in the Upper Gulf of California where is estimated a potential production of 23,000 GWh/year and 26GW installed.

Finally, the formation of a group of specialists from different academic institutions, government agencies and private companies focused on ocean energy is in the process, for exploitation, uses and applications. 

Ocean Energy Policy

The renewable energy policy in Mexico (including ocean energy), is based on the Law of Public Electricity Service (LSPEE), which together with the Energy Regulatory Commission (CRE), indicate the rules for generating, conduct, transform, distribute and supply energy. 

There are other laws relevant to the determination of the energy policy, such as the Law on the Use of Renewable Energy and Energy Transition Financing (LAERFTE) which defines renewable energy sources, applicable for processing permission with the CRE and the Federal Administrative Procedure Act (FAPA) provides special rules of procedure with some general provisions, such as time limits, sanctions, and verification visits appeal.

For the process of implementation of energy policy, and in particular the ocean energy, are considered the Secretary of Energy (SENER), the Federal Electricity Commission (CFE), the Navy Secretariat (SEMARNAT), the Secretary of communications and Transport (SCT) and the Ministry of Environment (SEMARTAT), among others. 

 

Strategy and National Targets

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Support Initiatives and Market Stimulation Incentives
Within the set of policy instruments available in Mexico for the promotion of renewable energy, there is accelerated depreciation for investments in renewable energy, established in 2005, which allows 100% depreciation of investments “for machinery and equipment for the generation of energy from renewable sources. Tariff “0” is exempt from payment of general import tax or export: Machinery, equipment, tools, materials, animals, plants and other items for research or technological developments. 

The Rural Electrification Project Renewable Energy Sources promote rural electrification projects within the next five years to 50,000 households in the poorest municipalities in the country with over 60% of indigenous population. 

 

Main Public Funding Mechanisms

Fondo Sectorial de Energía-Sustentabilidad Energética.
With the Energy Sector Fund-Energy Sustainability, the Energy Secretariat (SENER) and the National Council for Science and Technology (CONACYT), aims to “promote scientific research and applied technology, and the adoption, innovation, assimilation and technological development in the field of renewable energy, energy efficiency, clean technologies, and diversification of primary energy sources.“ The resources for the fund will come from a fee equivalent to 0.13% of the value of crude oil and natural gas extracted by PEMEX.

Fund for Energy Transition and the Sustainable Use of Energy.
The Financing Program for Renewable Energy Projects, was created to foster the domestic energy sector through projects, programs and actions to achieve greater use and development of renewable energy sources and clean technologies. The fund’s resource is used to promote the energy transition, the energy saving, clean technologies and the use of renewable energy.

Financing Program for renewable energy projects and energy efficiency of International-type.
This program is supported by the German Ministry of Economic Cooperation and Development and the Credit Bank for Reconstruction and Development. The goal is to fund environmental measures in SMEs linked to industry and service sectors, to allow a reduction in the negative impact to the environment, and promote efficient use of natural resources. This support includes advice and support of SMEs for investment planning and the preparation of documentation for the loan application. 

Research & Development

Government Funded R&D

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Participation in Collaborative International Projects
The National University (UNAM) is participating in the European funded project HESEUS (Innovative technologies for safer European coasts in a changing climate). It is the largest Integrated Project within coastal risk assessment and mitigation funded by the EC and consists of 31 partner institutes from different countries.

The scope of the work is to verify whether there are any possibilities of combining wave energy conversion with coastal protection. The impacts of the project will be focused on reducing technical and non-technical risk in the marine environment as well as reducing the cost per kWh of generated energy, through multipurpose structures designed not only for electricity generation but also for coastal protection. The total investment is 10 million USA dollars. 

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