Mexico’s New Energy Reform Paves Way for Solar Explosion by 2020

Mexico’s New Energy Reform Paves Way for Solar Explosion by 2020

Mexico’s energy market has undergone a massive change, causing leading solar developers and financiers to wonder what the future holds for the Mexican PV market. Impressively, the forecast for the Mexican PV market is very bright, and as solar expert Mr. Hector Olea, President of ASOLMEX and CEO of Gauss Energia explains, “With this energy reform, the government wants to become more mainstream, similar to what we have seen in other countries where energy markets are standardized. For us, this market revolution is a game changer. We have to re-educate ourselves after 20 years of developing projects in one way, and we have to change the culture in Mexico to understand the implications.”

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Stakeholders Await Mexican PV Market Take Off: Solar Finance Tour Mexico Wrap Up

Stakeholders Await Mexican PV Market Take Off: Solar Finance Tour Mexico Wrap Up

In 2014, the Mexican government announced a massive energy reform that would completely restructure the energy industry, bringing a specific emphasis to the importance of renewable energy within the Mexican market. Solar PV has been at the forefront of the global renewable energy market, so it comes as no surprise that Mexico, home to some of the highest solar irradiation levels in the world, coupled with rising electricity prices and an increasing demand for power, would be ready and willing to begin their huge PV undertaking.

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Deutsche Bank MD expects Grid Parity Ahead for Mexican Solar PV Market

Deutsche Bank MD expects Grid Parity Ahead for Mexican Solar PV Market

Solar PV has recently been handed a huge responsibility, and solar proponents may now rejoice as the world finally expects solar power to fill the role of the global electricity providing powerhouse. While the global PV market rang in around 42 GW at the end of 2014, the worldwide market is now gaining even more momentum with emerging markets boasting impressive projects coming down the pipeline during 2015. Vishal Shah, Managing Director at Deutsche Bank, former Director of Barclays Capital, and Vice President of Lehman Brothers, shares his insight about the current situation of the global PV market in Mexico and what to expect for this growing market in the years ahead.

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The Key to Understanding the Energy Sector’s Reform in Mexico: Solar Finance Tour Mexico 2015

The Key to Understanding the Energy Sector’s Reform in Mexico: Solar Finance Tour Mexico 2015

While the exploratory phase for PV energy in the Mexican market is coming to an end, the privatization of the energy sector that has come into effect, and is currently being implemented is about to bring new life into the Mexican market. Many questions still remain about how some of the reforms will be implemented at an operational level and the effect this will have on key stakeholders.

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Solarcentury plans two PV plants totaling 40 MW in Mexico

Solarcentury plans two PV plants totaling 40 MW in Mexico

PHOTON - UK solar developer Solarcentury will install two PV power plants with a combined capacity of 40 MW in Jalisco and Nayarit, western Mexico, according to local financial newspaper El Financiero. The two PV plants will sell their electricity output to local companies and public schools, according to the article, which does not reveal more details on the projects.

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JinkoSolar signs 1MW supply agreement with local Mexican solar distributor

JinkoSolar signs 1MW supply agreement with local Mexican solar distributor

Mexico City, March 6, 2014 - JinkoSolar Holding Co., Ltd. ("JinkoSolar") (NYSE:JKS), a leading global solar PV power product manufacturer, attended the “El Futuro Solar”event organized by SolarPlaza, where JinkoSolar’s customer, “Suministros de Especialidad, S.A. de C.V.” signed a 1MW annual supply agreement to attend their needs of distribution and installation during 2014.

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Mexico – building a renewable energy market without conventional feed-in-tariffs

Mexico – building a renewable energy market without conventional feed-in-tariffs

Apricum Senior Consultant, Sebastian Schierenbeck examines Mexico’s renewable energy schemes with a focus on solar energy. Adopting a different approach to the conventional feed-in-tariffs favored in established renewable energy markets, Mexico’s mix of energy schemes provides a good foundation for the steady and sustainable growth expected. 

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High Profile Speakers to attend El Futuro Solar: Mexico

High Profile Speakers to attend El Futuro Solar: Mexico

MEXICO CITY – This March, Mexico City will once again set the stage for the El Futuro Solar: Mexico, an event organized by SolarPlaza. Held on March 6th as part of the 5-day Solar PV Trade Mission, it promises to be a distinguished event, with many high profile speakers scheduled to appear. Mexican participants will find potential foreign counterparts that are looking for partnerships to take advantage of a growing solar market in Latin America's second largest economy.

 

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Enormous potential of solar in Mexico requires a pro-active attitude from investors

Enormous potential of solar in Mexico requires a pro-active attitude from investors

MEXICO CITY – After many years of lagging behind internationally, Mexico is slowly warming up to alternative energy sources. Foreign investors are looking with interest to Latin America's second largest economy, as this year will signify a further development of the market and mark the passing of an important energy reform, which is expected to open the sector to more investment from private parties. To Mexican solar entrepreneurs, 2014 therefore promises a vast array of new business opportunities.

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Mexican economy should be growing 5 percent by 2016 - Videgaray

(Reuters) - Mexico's economy should grow by more than 5 percent per year in the second half of President Enrique Pena Nieto's 2012-2018 administration thanks to economic reforms, Finance Minister Luis Videgaray said on Thursday.

In 2013, Congress passed a series of measures aimed at lifting Mexican growth, which has lagged that of regional peers for years. The reforms stretched from the telecoms sector and tax changes to ending the country's 75-year-old oil monopoly.

(...)

Turning to the energy reform, the finance minister said Mexico needed to find $20 billion to $30 billion in additional investment per annum for the energy sector.

"We hope it'll come with the energy reform," he said.

Crude output in Mexico has fallen by more than a quarter since hitting a peak of 3.4 million barrels per day in 2004. 

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PwC Report - Mexican Energy Reform

Mexican Energy Reform, Decree for the Transitory Regime Approved by Congress

The Mexican Congress has approved the "Decree amending and adding provisions to the Mexican Constitution in matters of energy". The debates emphasized the need to modernize the energy sector and strengthen the Department of Energy (Sener) and regulatory bodies as well as future "State Production Entitites": Pemex and CFE. This PwC publication sums up the amendments and additions.  

CLICK HERE to download the report

 

Mexican Congress Approves Bill To Open Mexico's Electricity Industry To Private Investors

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By Alberto De La Parra, Jones Day

MONDAQ - On December 16, the Mexican Congress and the majority of the states' legislatures approved a bill reforming the energy legal framework (the "Energy Bill"). The Energy Bill represents one of the major changes in the sector and is a huge step forward toward the expansion and modernization of the industry and the creation of important investment opportunities.

The Energy Bill modifies Articles 25, 27, and 28 of the Mexican Constitution for the purpose of allowing private participation in Mexico's electricity industry. Although the constitutional amendments do not actually privatize the Federal Electricity Commission ("CFE"), the bill primarily allows private participation in the generation and commercialization of electric power.

The Energy Bill sets forth four main points: (i) reduction of electricity costs; (ii) organization of a national electrical system based on technical and economic principles; (iii) promotion of the electric energy sector based on joint participation by CFE and the private sector in the generation and sale of electric power to the public, and (iv) strengthening of the state regulatory authority with respect to development of the electric energy sector and the imposition of interconnection obligations, tariffs, universal service, and electrification on its participants. The proposal establishes that:

" Private party participation in the generation and commercialization of electric power for the public will be allowed. Currently, the private sector generates electric power only under self-consumption structures, and CFE is the only company engaged in the generation and sale of electric power for the public. With the proposed changes, this restriction is eliminated and private entities will be allowed to generate and distribute electric power to the public.

" The Mexican government will maintain the exclusivity of the national electric transmission system, ensuring access for all electric power producers.

Although the proposal suggests amendments only to Articles 25, 27, and 28 of the Mexican Constitution, these amendments represent a fundamental shift in the approach to the development and use of Mexico's abundant natural resources.

The amendments, while fundamental, are only the first step in the process, since the Mexican Congress will have to reflect such constitutional changes through the secondary laws, which shall be approved in a period not exceeding 120 days after the constitutional modifications are in force.

The secondary laws will establish the formalities and terms CFE will need to apply in order to convert into a productive governmental company, in accordance with those terms and formalities.

The Energy Regulatory Commission ("Comisión Reguladora de Energía") will be entitled to grant permits, authorizations, and concessions for the generation and distribution of electric energy generated by private parties. In addition, it will be granted constitutional autonomy and will have 120 days to appoint its commissioners, which would be elected by a proposal of three candidates proposed by the President and considered by the Senate.

During the 12 months after approval of the secondary laws, the President will be required to incorporate the National Center of Energy Control ("Centro Nacional de Control de Energía" or "Cenace") as a decentralized entity, since it currently is an entity under CFE structure overseeing the electricity dispatch in Mexico. This center will be tasked with the management of the national electric grid, operating the wholesale electricity market to provide open and nondiscriminatory access to the national transmission grid and public distribution.

Original Source

Update on the Mexican solar market in 7 headlines

Mexico as Bellwether for an Unsubsidized Solar Future

Forget Japan, China and the U.S.—how do unsubsidized markets behave?
Indeed, Mexico today is "California five or six years ago," according to James. He suggests that business strategies will need to reflect that reality, with aspirants picking a niche market and broadening their base.

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Mexico to Triple Demand for Solar Next Year With 250 Megawatts

More than 200 megawatts of the projects will be large-scale facilities and about half of them are planned for the state of Baja California Sur, Adam James, a South Bend, Indiana-based analyst at GTM Research said today in a telephone interview.

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Mexican Sun Lures Cash to Solar as Panel Prices Plunge

Solar energy makes economic sense for about 3.5 million commercial customers and 500,000 high-use residential consumers who pay “extremely high” electricity rates, according to BNEF. Installations of under 500 kilowatts benefit from net metering, a system that credits generators for the power they can’t use.

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Largest solar plant in Latin America nearing completion

The 30-megawatt Aura Solar plant in La Paz, Baja California Sur, Mexico is the country’s first utility-scale solar installation with a power purchase agreement with the federal power company, according to a release from Suntech.

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Could Mexico be at the start of a solar boom?

It has ambitious plans to generate 35% of its energy from clean sources by 2026. That would be up from less than 15% now, which is mostly hydro, with wind and solar only providing only ±1.5%. These renewable sources would need to grow a lot, and in such a sunny country, solar power makes a lot of sense.

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Ford To Buy Solar Power From 20 MW Mexico Solar Power Plant

Mexico has tremendous (insanely good) solar energy resources, but it hasn’t been a leader in the solar power space to date. However, it is starting to get its ducks in order – last year it passed a 35% Clean Climate law, its clean energy investments surged in 2012, and just this week we announced that the largest solar PV power plant in Latin America is now under construction in Mexico.

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Mexico housing project goes solar

Mexico leads Latin America in solar energy production but analysts say the country has yet to exploit its full potential. More solar power generation in Mexico will free up its oil output for exports and save the state precious resources that are currently spent on producing non-renewal energy.

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