; 7_participacin_privada__electricidad
Documents
Resources
Learning Center
Upload
Plans & pricing Sign in
Sign Out
Your Federal Quarterly Tax Payments are due April 15th Get Help Now >>

7_participacin_privada__electricidad

VIEWS: 31 PAGES: 13

  • pg 1
									Participation of the Private Investment in the Mexican Power Sector
Cintia Angulo
November, 2008

Origin of the Mexican Electric Sector

• First activities in 1879 – Self supply in León, Guanajuato • 1881 – Introduction to Mexico City of electric power • First years of XX Century - Many companies act as electric suppliers and distributors but electric power was reserved to “profitable customers” • CFE founded in 1937 – Make electricity available to all the country and all the people • Electric Industry nationalized in 1960 - CFE and LyF remain as exclusive suppliers of Public Service of Electric Power

The new Law from 1992

• New Law for Public Service of Electric Power approved by the Congress in 1992. Public Service still reserved for the Mexican State but considers out of this definition to: – Cogeneration – Self-consumption – Independent Power Production that has the objective of selling its production to CFE – Small production < 20 MW – Generation for emergencies – Exports resulting from these activities – Imports for self consumption

The new Law from 1992

• With the new 1992 law, the foundation of the Energy Regulatory Comission (CRE) in 1993 and the Regulatory frame published in 1994, the electric sector has experienced significative changes: – System not suffering anymore of supply restrictions – Generation park has been mostly updated – Fuel matrix diversified, and fuel supply secured – Cogen projects already developed

– Opportunity fuels (i.e. Petcoke) used for generation in self-supply projects

The IPP program from CFE – Operating Plants
• CFE has signed 21 PPA’s with IPP’s Combined Cycle Plants
Project
Mérida III Hermosillo Saltillo Tuxpan II Río Bravo II Bajío (El Sauz) Monterrey III Altamira II Campeche Naco Nogales Rosarito 10 y 11 Tuxpan III y IV Altamira II y IV Chihuahua III Río Bravo III Río Bravo IV La Laguna II Valladolid III Altamira V Tuxpan V Tamazunchale

Owner
AES Union Fenosa Gas Natural Mitsubishi/Kyushu Gas Natural Intergen Iberdrola Gas Natural Intergen Unión Fenosa Intergen Unión Fenosa Iberdrola Intergen Gas Natural Gas Natural Iberdrola Mitsui Iberdrola Mitsubishi/Kyushu Iberdrola

Contractual COD Capacity (MW)
2000 2001 2001 2001 2002 2002 2002 2002 2003 2003 2003 2003 2003 2003 2004 2005 2005 2006 2006 2006 2007 484 250 247,5 495 495 495 449 495 252,4 258 489,1 983 1036 259 495 500 498 525 1121 495 1135

Source: CFE

The IPP program from CFE – Effect on the Operating Reserve Margin
In 1997 and 2000 CFE bought under emergency large gas turbines for facing very low reserve margins After IPP’s came in line the Operating Reserve Margin strongly increased and actually must be reduced today due to a lower than expected growth of the GDP
Source: SENER

The IPP program from CFE – A competitive source of generation
IPP's capacity growth in CFE grid
60,000 50,000 40,000

23%

30,000 20,000 10,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 IPP's capacity CFE capacity

IPP’s generation has become the main source of CFE new available capacity The economy of these plants has displaced in the dispatch to older, more expensive plants
Source: CFE

MW

IPP's generation growth in CFE grid
250 200 31.6%

TWh

150 100 IPP's Generation 50 0 2000 2001 2002 2003 2004 2005 2006 2007 CFE Generation

The IPP program from CFE – Effect on the CFE fuel matrix
CFE- 2000 Mix of technologies
Hydro
26.2%

Fuel oil
ST Fuel oil ST Geothermal ST Coal ST Nuclear Wind GT CCPP

6.4% 9.3% 0.3% 0.0% 3.7% 12.8% 2.3% 38.9%

Energy cost

Natural gas

2008 - 50 GW
CFE - 2008 Mix of technologies
0.4% 22.1%

Diesel

2000 - 36.7 GW

34.6%

Source: CFE
3.4% 0.2% 2.7% 9.4% 1.9%

Hydro ST Fuel oil ST Geothermal ST Coal ST Nuclear Wind GT CCPP Diesel

25.2%

The IPP program from CFE – Summary
• Both CFE and the Producers have benefits from the External Producers Program
– CFE is not exposed to the technical risks of the EPC and O&M neither to the increase in price of the equipment or replacement parts – PPA has disuasive methods for maintaining a very reliable service from the IPP owned power plants – The Producer is not taking the exposure of the electric market – CFE has been able to invest in modernization of its existing fleet (RM’s program), transmission and distribution networks

– New infrastructure has been created for the supply of fuel like the large LNG terminals and new public and open access private pipelines

Self-supply, cogeneration and small production
• Some important investments developed with new 3 GW during the last decade totalling 6.3 GW today • Important projects under development
– AHMSA – 450 MW – Self-consumption low grade coal – Grupo Mexico – 600 MW – Self consumption imported coal – Nuevo Pemex – Cogen 300 MW natural gas

• Small hydro developed taking advantage of CDM’s • Fuel efficiency and use of opportunity fuels are characteristic of these projects • Wind is today under strong development under self-supply scheme, but additional support for renewables still required for full development if this resource

Wind projects perspective
Pr ec oj t EDF Ener es N ouvel gi l es Fuer a Eól a delI t o z i c sm CI – GAM ESA SA Eol ec i at Eur ( us Cem ex Ac cona) - ci Par ques Ec ogios (ber ol ol c I dr a) CFE ( Vent II La a I) CFE ( Oax a I I,II I ac , I I, V) Dem ex Eol ec delI t o i at sm Eol ec delPacfc i at íio Fuer a Eól a z i c Gam es Ener a a gí Pr eneal Uni Fenos ón a N ew pr ec s unders udy oj t t Fuer a Eól a z i c Uni Fenos ón a Cannon Pow er Sem pr Ener a gy St e gover ent at nm Tot al Regi on Oax a ac Oax a ac Oax a ac Oax a ac Oax a ac Oax a ac Oax a ac Oax a ac Oax a ac Oax a ac Oax a ac Oax a ac Oax a ac Oax a ac Oax a ac Oax a ac Baj a Baj a Baj a Baj a Baj a Capac t ( W ) iy M Siuaton t i 67. 5 Ac es t tans ison s ur c o r m s i ec ed 50 w ih exs i i r tuc ur t itng nfas r t e 26 22 250 Ac es t tans ison s ur c o r m s i ec ed, 80 butr equii upgr rng ade i n 100 tans ison i r tuc ur r m s i nfas r t e 405 221 142 Tr m ison nots ur ans s i ec ed. 160 Pr ec s w i have t ent i o an oj t l l o er nt 50 open s on pr es eas oc s 288 400 230 3800. 0 Tr m ison underanalss ans s i yi 300. 0 Tr m ison non s ur ex t ans s i ec ed, por 500. 0 pr ec s ar alo s ec t oj t e s ubj t o 200. 0 tans ison botl r m si tenec i kn 250. 0 Cal or a i ni f 30. 0 Pr ec unders udy oj t t 7571.5 SOURCE: SENER

Summary
• With proper regulation and control of the Mexican State, private investment has proven to be useful for solving many issues in the Mexican Electric Industry like:
– Sufficient and reliable supply – Renovation of the generation park for modern, more economic plants with reduced emissions – Reduced exposure of public companies to technical issues linked to the production of energy – Use of non-traditional, opportunity fuels – In general terms, a better electric public service

Total presence of the private investment in the Mexican Electric Industry
Distribution of the Mexican Capacity
6.6% 3.7% 1.8% 20.2% CFE CFE-IPP's LyF PEMEX 67.8% Self-supply and Cogen

Private and State investment

The private investment represents today 27% of the national electric installed capacity, participating with 37% of the total generation.

27% Mexican State Private investors 73%


								
To top