IEA Geothermal Implementing Agreement
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1 IEA Geothermal Implementing Agreement Mexico Country Report 2014
2 Figure 1 Los Azufres geothermal field, Mexico 1.1 Introduction and Overview Geothermal and wind are the most important non-conventional renewable energy sources utilized in Mexico. Although there is some tradition for direct uses of geothermal energy, mainly related to balneology, the most important use is for electricity generation. Geothermal development for electricity generation started in Mexico in 1959, with the commissioning of the first commercial plant in the Pathé field (central Mexico) that was in operation up to That year the first geothermal power plants in the Cerro Prieto geothermal field started to operate. By December 2014 the geothermal-based installed capacity for electricity generation was MWe, and the running capacity was MWe (Table 1). Key statistics related to power generation with geothermal energy in Mexico for 2014 are shown in Table 1. During 2014 there were 230 production wells and 28 injection wells in the four operating fields, on average. These wells were distributed as follows - Cerro Prieto: 164 production and 19 injection, Los Azufres: 39 production and 6 injection, Los Humeros 23 production and 2 injection, and Las Tres Vírgenes: 4 production and 1 injection. There is no comparable use or collection of data for direct uses of geothermal energy in Mexico; the most recent estimate places direct use of geothermal heat at 156 MWth. This is mainly for balneology. The number of sites using geothermal heat for balneology is around 165, distributed across 19 states. 1
3 Table 1 Status of geothermal energy use for electric power generation in Mexico for Electricity Total Installed capacity (MWe) Running capacity (MWe) Generation equipment out of operation, mainly for lack of steam (MWe) New installed capacity (MWe) 0 Contribution to National capacity (%) (Accounting for the running capacity) 2.03 Total generation (GWh) 5868 Contribution to National generation (%) 2.3 Target na 2 Estimated Country potential (MWe) na data not available MWe (flash) in Cerro Prieto I, 20 MWe (flash) in los Azufres and 3 MWe (binary) also in Los Azufres. 2 There is no specific target set for geothermal energy. A target of 35% of total installed power generation capacity is set for clean sources by Clean sources are usually understood as those producing little or no greenhouse gas emissions, and they include geothermal energy. 3 Estimated potential from conventional hydrothermal resources with t > 150 C. Of these, 125 MWe correspond to proven, 245 MWe to probable, 75 MWe to measured, 655 MWe to indicated and 1,210 MWe to inferred resources (Gutiérrez-Negrín, 2012). 1.2 Highlights and Achievements One new geothermal field was developed during 2014, known as the Domo San Pedro field, located in the State of Nayarit and related to a couple of Quaternary dacitic domes. This is the first field privately developed in Mexico, under the previous energy regulatory framework. Several geothermal production and injection wells have been drilled, and the first two backpressure units of 5 MWe each were being installed. An additional power unit, a flash plant of 50-MWe (net), was installed in the Los Azufres geothermal field, and was under final tests by the end of This unit starts to commercially operate in February 2015, and with this four of the seven 5 MWe backpressure units will be decommissioned. Therefore the net additional capacity increase will be 30 MWe. 1.3 National Programme About 62.7% of the electricity for public consumption is generated by the government-owned utility the Comisión Federal de Electricidad (CFE). The other 37.3% is generated by privately-owned companies that operate combined-cycle and wind power plants and, until the end of 2014, were obliged to sell their power to CFE (except self-suppliers). At the end of 2014, CFE had developed and was managing all operating geothermal fields, however a private developer is expected to start power generation with geothermal energy in early 2015 (in the Domo San Pedro field). This primary energy source has been utilized for decades for power generation; the technology is considered mature for conventional (hydrothermal, high temperature) resources and it is set to compete under the same bases as fossil-fuel, conventional hydro and nuclear technologies. A target has been set for 2024, when 35% of the electric power generation in the country should come from clean energies, including geothermal. At present several working groups are being set up in order to establish targets for specific technologies. 1.4 Industry Status and Market Development At present there are no special economic incentives for geothermal development in Mexico. As mentioned above, power generation with geothermal energy is 2
4 considered conventional in Mexico, and thus it is set to compete under the same bases as fossil-fuel, conventional hydro and nuclear technologies. Therefore, it is fair to say that the main constraint for further geothermal development in this country is its economic disadvantages compared with modern fossil-fuel generation technologies. In 2013, Congress approved important constitutional modifications that paved the way for a substantial energy reform in Mexico, and in 2014 a number of pieces of legislation were approved that regulate the oil and electric power industries. One of these is the new Geothermal Energy Law (Ley de Energía Geotérmica), passed in August 2014, which is based on a grant system to allow exploration and exploitation of new geothermal areas in Mexico not only for the CFE, but also for private developers. Specific regulations for this act were issued by the Energy Secretary in late October The regulation defines the process for application for and authorisation of registrations, permits and concessions for the stages of reconnaissance, exploration and exploitation of geothermal resources in the country. 1.5 Research, Development and Demonstration/Deployment Most geothermal research activities in Mexico are focused on development and exploitation of resources for power generation. Specifically, they are aimed at improving the knowledge of the fields and thus the ability to predict their behaviour under continued exploitation. In recent times, effort has been spent in exploration of new areas with geothermal potential. Most geothermal research is funded by the federal government, although exploration of new areas has been carried out recently by private consortia. In 2014, the federal government launched the Mexican Center for Innovation in Geothermal Energy (CEMIE-Geo), which is led by the Ensenada Center for Scientific Research and Higher Education (CICESE), with participation from private companies, associations and institutions related to geothermal energy in Mexico. 1.6 Geothermal Education In the past, CFE has trained some of their engineers through the geothermal programs offered by Iceland (the United Nations University), New Zealand (the Geothermal Institute of the University of Auckland) and the Baja California University (UABC). In addition, CFE sent young engineers to Japan, for training under an agreement between JICA and the Mexican government. For the most part, mechanical, electrical, chemical and geological engineers are trained on the job, as part of their professional development in CFE and the Instituto de Investigaciones Eléctricas (IIE). Periodic professional meetings (congresses, seminars, etc.) provide a basis for continued education of geothermal personnel. 1.7 Future Outlook As mentioned above, it is expected that geothermal energy will experience a new boost now that the geothermal act is in force and the 30 new innovation projects of the CEMIE-Geo have started. These will continue to be developed between now and References Gutiérrez-Negrín, L. C. A. (2012) Update of the geothermal electric potential in Mexico. Geothermal Resources Council Transactions, Vol. 36, pp Gutiérrez-Negrín, LCA, R. Maya-González and JL Quijano-León (2015). Present Situation and Perspectives of Geothermal in Mexico. Proceedings World Geothermal Congress 2015, Melbourne, Australia, April
5 1.9 Authors Magaly Flores Armenta, Manager of Geothermal Projects, Comisión Federal de Electricidad (CFE). Luis Gutiérrez-Negrín, Asociación Geotérmica Mexicana, David Nieva, Instituto de Investigaciones Eléctricas (IIE), Reforma No. 113, Col. Palmira, Cuernavaca, Morelos, Mexico 4
6 To Find Out More If you are interested in learning more about the IEA Geothermal Programme, or you wish to join the IEA-GIA: Contact: IEA-GIA Secretary c/o GNS Science Wairakei Research Centre Private Bag 2000 Taupo 3352 NEW ZEALAND Tel: OR Visit the IEA-GIA Website IEA Geothermal Supporting and Advancing Worldwide Sustainable Geothermal Energy Use Through International Cooperation The IEA Geothermal Implementing Agreement (GIA), also known as the Implementing Agreement for a Cooperative Programme on Geothermal Energy Research and Technology, functions within a framework created by the International Energy Agency (IEA). Views, findings and publications of IEA GIA do not necessarily represent the views or policies of the IEA Secretariat or of all its individual member countries.
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