Mexico Targets $44 Billion Investment Adding 22 Gigawatts of Power by 2014

---

Researched by Industrial Info Resources (Sugar Land, Texas). It is national election time in Mexico, and projections and forecasts are in the air as politicians grapple with the problems of driving strong industrial growth potential and providing increased ‘quality of life services’ to the country’s masses. Although over 93% of the population currently have access to power, interruptions are frequent and the national system needs an ongoing power supply reserve to provide security both for households and industry.

The latest estimates for requirements of new power generation sources have been released by Sener’s (National Energy Ministry) investment promotion department. While the details of the power projections differ in detail from pervious estimates since 2000, there is a degree of consistency regarding the needs of the power industry over the next ten years, facing an expected annual growth in demand of 5.2% (previous growth rate for the period was 6.5%).

By 2014, it is estimated that an investment of $44.6 billion will be required to add 22,205 megawatts of power generation to the national total. This will give Mexico a total power capacity of just under 70,000 megawatts, which is up from the current capacity of 43,000 megawatts. The emphasis is placed on combined cycle plants to provide the new generating capacity. Eleven new projects, which are all due to begin commercial operations between 200-2012, have been identified by Sener. These projects will provide a total additional capacity of 4,470 megawatts.

Seven of these projects in the power drive will be financed by the private sector and will be constructed in Baja California state, Guerrero, Mexico, Nayarit, Puebla, Sonora and Veracruz. The other four projects will be financed using a mixed investment program with budgetary sources from CFE, the state power company’s independent power producer program. Baja California, Chihuahua, Durango and Oaxaca will host the sites for these plants.

CFE controls 70% of installed power capacity in Mexico and holds a monopoly on electrical transmission outside Mexico City and some other municipalities. The state’s LFC (Luz y Fuerza Centro) has a monopoly over national distribution.

With an ambitious target of diversifying sources of power generation, Sener is looking to provide 14,650 megawatts of renewable energy to the supply resource by 2014. This is 66% of the total additional capacity with wind power seen as the provider of the majority of the ‘clean’ power. Solar, biogas, geothermal, mini-hydro and biomass will be the other renewable power sources. Currently, Mexico’s renewable energy comes mainly from hydropower plants with a capacity of 10,530 megawatts, followed by geothermal providing 960 megawatts, biogas 51.2 megawatts, solar 12.2 megawatts, mini-hydro 8 megawatts and finally wind with 2 megawatts.

Industrial Info Resources (IIR) is a Marketing Information Service company that has been doing business for over 23 years. IIR is respected as the leader in providing comprehensive market intelligence pertaining to the industrial processing, heavy manufacturing, and energy-related industries throughout the world.