An Open Season Scheme to develop Transmission Interconnection Investments for large wind farms in Mexico

Transcription

1 An Open Season Scheme to develop Transmission Interconnection Investments for large wind farms in Mexico Francisco J. Barnés Washington, DC, April 1st, 2009

2 Power Generation Capacity 2000 At the end of 2000, Mexico had 41,000 MW of installed power generation capacity 11,000 MW were based on renewable energy, most of them in large hydro Only 480 MW were private investment, the great majority in sugar cane mills INSTALLED CAPACITY 2000 (41,000 MW) Hydro - CFE/LFC Hydro - private Geothermal - CFE 9,620 MW 18 MW 855 MW 484 3,854 Wind - CFE Wind - private 2 MW 0.5 MW 1,365 24, ,476 Biomass - private Total 463 MW 10,957 MW Nuclear Fossil fuels Renewable energy CFE/LFC IPP Other private

3 Regulatory Framework In the last few years CRE has fostered the development of new regulatory schemes to encourage specific applications of renewable energy On 2001, new regulatory measures were issued with the purpose of encouraging the development of generation projects based on renewable energy sources with intermittent availability, such as solar and wind On 2004, a modification of the Interconnection Contract Model was published, to include hydroelectric projects where the operator has no control of the rate of water extraction On 2006, a new modification was published, to include the methodology for capacity credit On November of 2008, an initiative for a renewable energy act was approved to Congress

4 Regulatory Framework The main elements of this new regulatory scheme are the following: Generated energy is dispatched whenever available; >An energy interchange scheme is introduced: Excess energy generated at any given time may be accumulated within CFE and withdrawn when required, even in different time periods; Energy interexchange will take place at tariff prices at the interconnection point; At the end of the year, excess energy accumulated in the system can be sold to CFE at 85% of the short-term generation cost;

5 Power Generation Capacity 2006 In 2006, Mexico had 54,500 MW of installed power generation capacity 12,950 MW were based on renewable sources of energy (25%) Only 85 MW were based on wind energy TOTAL INSTALLED CAPACITY 2006 (54,460 MW) Hydro - CFE/LFC Hydro - private 11,325 MW 47 MW Geothermal - CFE Wind - CFE Wind - private 960 MW 85 MW 0 MW Nuclear Fossil fuels Renewable energy CFE/LFC IPP Other private Biomass - private Total 485 MW 12,946 MW

6 Wind Generation In addition to the 85 MW plant installed by CFE: CFE had announced plans to install another 500 MW in Oaxaca, though IPP projects. The first bid, for a 104 MW plant, has just been granted The Energy Regulatory Commission (CRE) had granted eight additional permits to install a total wind capacity of 1076 MW for self supply purposes, 716 MW to be located in in Oaxaca Private companies had announced plans to install more than 2000 MW wind capacity in Oaxaca during the next few CFE CFE-IPP Private

7 Wind Potential in Oaxaca The state of Oaxaca has an estimated wind potential of over 10,000 MW Average wind velocity is above 15 m/s (An average of 30 empty trucks are turned-over by the wind every year) Measured plant load factor is greater than 50% Oaxaca s wind potential Wind speed distribution

8 Transmission Limitations However, transmission infrastructure in the region is very limited It does not allow for the evacuation of the power that will be generated by CFE and the private companies A new 400 KV power line with a transmission capacity of at least 2,000 MW is required for that purpose. Nueva Línea de 400kV

9 Open Season However, CFE could not use public funds for the construction of a new transmission line unless there was a firm commitment of the permit holders to pay for the line Permit holders could not close the deals with their associates and banks if the transmission capacity was not guaranteed by CFE To get around this bottleneck, In January 2006 the Energy Regulatory Commission (CRE) presented to SENER, to the Mexican Association for Wind Energy (AMDEE) and to CFE the basic outlines of an Open Season to develop the required new transmission infrastructure In February 2006 SENER requested CRE to conduct that Open Season in order to: Identify the transmission infrastructure requirements Determine the transmission capacity that private generators were willing to reserve under firm bases Guarantee CFE commitment to build the new infrastructure

10 Technical Considerations In June 2006, CFE submitted the transmission project for 2,300 MW associated to the Open Season, The proposed new infrastructure had the following characteristics: A new substation, La Ventosa, located in the Isthmus of Tehuantepec, integrated by: The feeder bays needed to receive the energy from the private generators, at 115kV and 250kV. 400/115 kv and 400/250 kv transformers with a total capacity of 2,250 MVA. Three 400 kv feeder bays A 300 Mvar 400 kv dynamic voltage control device A 90 miles new 400 kv single circuit on an existing line and a 400 kv double circuit on a new line, running from La Ventosa substation to CFE s Juile substation Three 400 kv feeder bays at Juile substation. A 100 mile 400 kv single circuit, running from CFE s Juile substation to Cerro de Oro substation.

11 Open Season Financing The project cost estimate was 108,000 USD/MW CFE and SENER agreed to use the financed public works scheme (OPF) as the most suitable for this project Every company participating in the Open Season had to provide CFE with guarantees for specific amount, depending upon its reserved capacity on the new line, before CFE started the bidding process for the new infrastructure

12 Open Season Results Once the Open Season was closed, CFE decided to reserve capacity in the new transmission line for its future projects rather than reinforce the existing infrastructure, as originally planned This opened the possibility to advance the start-up date for those companies that were interested, under the condition that they had to reinforce the existing infrastructure at their own expense A second Open Season was called for this purpose Two companies agreed to revamp the existing transmission infrastructure and increase the current capacity by 330 MW The revamping project has been concluded The first self-supply plant, with 80 MW inaugurated and is already in operation capacity, was recently The second plant, with 250 MW capacity, will be in operation by mid 2009

13 Open Season Results The contract for a new transmission line with a capacity of 2,300 MW has already been assigned and is expected to be in operation by 2010 We expect that in the next three years close to 2,600 MW of wind energy will be installed in Oaxaca, once the new transmission line is in operation, : 585 MW dedicated to the public service, that will enter in operation between 2008 and 2012 (500 MW of these will be IPP s) 540 MW for self-supply projects installed between 2008 and 2010, reinforcing existing transmission capacity 1,487 MW for self-supply projects, installed between 2010 and 2012, that will use the new transmission infrastructure

14 Open Season Results No No No Companies Empresas que that usarán will use la existing infraestructura CFE infraestructure actual de CFE Capacidad Capacity Generación anual Emisiones evitadas Start-up date Permit Number Company Empresa (MW) (GWh) (Ton CO2) 1 Fuerza Eólica del Istmo E/70/AUT/98 2 Eléctrica del Valle de México E/201/AUT/ Eoliatec del Istmo E/322/AUT/ Bii Nee Stipa E/575/AUT/2007 Subtotal ,995 Companies trat will reinforce existing CFE infraestructure Capacity Start-up date Company (MW) 1 Eurus Parques Ecológicos de México Subtotal Permit Number E/532/AUT/2006 E/215/AUT/2002 Companies that will use the new infraestructure Capacity Start-up date Permit Number Company (MW) 1 Desarrollos Eólicos Mexicanos Eoliatec del Pacífico E/685/AUT/ Eoliatec del Istmo E/322/AUT/ Gamesa Energía Preneal México Unión Fenosa Generación México Fuerza Eólica E/70/AUT/98 Subtotal 1, ,998,325 Total 1, , ,638,778

15 New Capacity Program Company Voltage MW Sem 2/2010 Unión Fenosa Fuerza Eólica Desarrollos Eólicos Sem 1/2011 Sem 2/ Sem 1/2012 Sem 2/2012 Preneal Gamesa Eoliatec Istmo Eoliatec Pacifico Total MW 1,

16 Power Generation Capacity 2012 In the period of the present administration, 12,400 MW of new capacity will be installed in Mexico. 33% of this capacity will be based on renewable energy 2,500 MW on wind energy 890 MW in large hydroelectric plants 310 MW on other renewable energies TOTAL INSTALLED CAPACITY 2012 (67,900 MW) 7,400 12,660 28,950 3, ,640 13,350 Nuclear Fossil fuels Renewables CFE/LFC IPP Other private Hydro - CFE/LFC Hydro - private Geothermal - CFE Wind - CFE Wind - private Biomass - private Solar - CFE Total 12,215 MW 225 MW 1,045 MW 590 MW 1,980 MW 540 MW 30 MW 16,625 MW

17 Thank you very much