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

Similar documents
RENEWABLE ENERGIES REGULATION & INCENTIVES THE CASE OF MEXICO

Energy transition and renewables expansion under nascent market

Towards a low carbon emissions energy sector: Mexico s regulatory efforts

Electric Power Systems An Overview. Y. Baghzouz Professor of Electrical Engineering University of Nevada, Las Vegas

Electric Power Systems An Overview. Y. Baghzouz Professor of Electrical Engineering University of Nevada, Las Vegas

The Constitutional Amendment in the Energy Sector: The Future of Mexico s Electricity Sector

Electricity Reform Overview

Inter-American Development Bank IDB PUBLIC SECTOR CTF PROPOSAL. Mexico Renewable Energy Program, Proposal III

SPP at a Glance. Located in Little Rock. Approximately 600 employees

NATURAL GAS DEMAND IN MEXICO S ELECTRIC GENERATION SECTOR: RESTRUCTURING OF THE POWER INDUSTRY AND FORECASTS TO 2025

MOBILIZING CLIMATE INVESTMENT

Clean Technology Fund. Project Proposal for Mexico: Private Sector Wind Development. (Current Information Document)

Mexican Electricity Reform

Nuclear Energy in the Near Future in Mexico

The International Energy Sector of Colombia, Mexico, Chile and Brazil Opportunities for Virginia Defense Companies

Dispersed Renewable Generation Transmission Study by Mike Michaud Matrix Energy Solutions June 27, 2008

RENEWABLE ENERGY INVESTMENT DRIVERS FOR ALTERNATIVE AND IN LATIN AMERICA. Milbank, Tweed, Hadley & McCloy LLP ALLAN T. MARKS.

MEXICAN ENERGY REFORM & CLEAN ENERGY CERTIFICATES 2016 UT: ENERGY WEEK

Sector Report. Power Sector. Mexico

Egyptian Renewable Energy plan

THE POWER SECTOR IN: MEXICO 1

The Electric Power System

Gas Natural Fenosa s Experiences on Renewable Energy Integration

Innovative Technology Solutions for Sustainability ABENGOA MEXICO. Corporate Presentation

Wind energy resource development along the Baja California-U.S. Border: progress and potential hurdles

Impact of Variable Generation on the Vermont Transmission Grid. Chris Root Vermont Electric Power Company, Inc.

Kor OZAY. Ankara, 27 th March 2013

Global Services Forum. Session 1: Leveraging infrastructure services as key enablers of the 2030 Agenda focus on Transport Services

Case Study: Mexico s Power Market Reform

Ministry of Industry and Trade General Directorate of Energy. Viet Nam s Power Development Plan

Country Overview Sri Lanka

Mexico Clean Technology Fund Investment Plan revision. CTF TFC Meeting, Washington DC May 2, 2013

PJM Analysis of the EPA Clean Power Plan

Mexican utility reform Powering the future

Barriers to Clean Development Mechanism Renewable Energy Projects in Mexico

Grid Integration of Renewable Energy. Robert S. Kaneshiro, P.E. Operations Assistant Superintendent Hawaii Electric Light Company (HELCO)

M.E. 523 M.E. 523 April 7, Renewable Energy and Green Power. Mike Richardson Manager, Renewable Energy Customer Programs

Wind power in Portugal: Renewable identification and security of supply

Renewable Energy: The Future of Biofuels

Expand Win-Win Cooperation; Promote Sino-African Mutual Development

INVESTMENT OPPORTUNITIES

REToolKit Case Study

Distributed Generation and a Solar Bonus

Cost of Service and Public Policy. Ted Kury Director of Energy Studies, PURC

WIND POWER IN THE SPANISH ELECTRIC MARKET

Facilitating energy storage to allow high penetration of intermittent renewable energy

Electricity Grid Evolution in EU pre-access Countries: the Turkish case. Gaia Moretti

World Small Hydropower Development Report 2013

The social and economic impact of large-scale wind and solar energy projects in Yucatán

Introduction: What Has to Change?

Electric Power Systems An Overview

CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-PDD) Version 03 - in effect as of: 28 July 2006 CONTENTS

UNM ME 217 Energy, Environment & Society. Renewable Energy and the Need for Energy Storage. November 8, 2011 Steve Willard, P.E

Integration of Renewable Energy Sources in the Electricity System - Grid Issues -

California Electricity Sector GHG Planning: Making early investments in CCS to lower the long-term cost of achieving a GHG reduction target

Designing Energy Solutions

California Grid Operations: Current Conditions and Future Needs

A1M15ENY. Jan Špetlík Praha 6

PRIMARY ENERGY (2015)

An IPP s perspective on power plant flexibility in Japan

Introduction of Hydrogen produced by Renewable Energy into the Peruvian Electricity Market

Renewable Energy Tracker TM

How to integrate up to 60% renewables to the EU power system

Transmission Network Development &RES Integration December 2013

Clean Energy Development in Sri Lanka

Overview on electricity systems and renewables integration V. Dordonnat RTE France

Grid-Scale Energy Storage

(Draft Captive and Renewable Energy Generating Plants) Regulations

Mexico INDICATORS FOR SUSTAINABLE ENERGY DEVELOPMENT INTERNATIONAL ATOMIC ENERGY AGENCY

Panel 1: VALUE AND BENEFITS OF GRID ENERGY STORAGE Scope of discussion, background and guiding questions. November 14 th, Cuernavaca, Morelos, México

PC24 High RE w/o Eldorado-Moenkopi

Modern Techniques including Renewable Energy Auctions for Economizing Renewable Energy Tariff. Pakistan Presentation

Grid Interconnection Issues for Wind Generation

Welcome! Northern San Joaquin Power Connect Open House. Bienvenido! Reunión pública de Northern San Joaquin Power Connect

Renewable & Alternative Energy Resources: What s the difference? 2

California ISO Preparing California for a Greener and Smarter Grid

Power Market and the role of the Clean Energy

Frequently Asked Questions

Electricity Slide Index Slide 2: Generating Electricity Slide 3: SA Power Grid

Buena Gobernanza Hacia la Transición Energética

Grid Integration of Wind Energy in Spain Tomás Romagosa Cabezudo 5th July 2018

Welcome! Bakersfield Power Connect Open House. Bienvenido! Reunión Pública

Peruvian Regulatory Framework

FOR OFFICIAL USE ONLY

Smart Grid. Project Types and Technology EnerNex. All Rights Reserved.

PG&E s Role in California s Clean Energy Future. Emma Wendt Pacific Gas and Electric Company January 25, 2011

REVIEW OF POWER SYSTEM EXPANSION PLANNING IN VIETNAM

Wild Horse Solar Photovoltaic Project

BASIC CONCEPTS. Yahia Baghzouz Electrical & Computer Engineering Department

Advancing Clean Energy in New Hampshire: The Northern Pass. Southern New Hampshire Planning Commission February 22, 2011

2.ENERGY AND OIL #INVESTINGUATEMALA. Industry in Guatemala

Flexibility in the Swiss Electricity Markets. Jan Abrell Energieforschungsgespräche Disentis 2019,

Chapter 2 The Evolution of the Demand for Primary Energy and Electricity in Spain

CONNECTION & COSTS. Mary Doswell Alternative Energy Solutions December 7 th, 2010

Nunavut - Energy Challenges

Renewable Integration at ERCOT

- the Offshore Wind Farms of the Desert Exploiting the Power from the Sun to Combat Climate Change

Under current trends, experts predict an increase in average temperatures in Mexico of 2-4 C by 2080, mainly in the northern regions.

IPP Initiatives & Opportunities for Private Sector in Fiji

MEETING ENERGY NEEDS WITH CLEAN AND RENEWABLE POWER

Transcription:

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

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 24,372 480 10,476 Biomass - private Total 463 MW 10,957 MW Nuclear Fossil fuels Renewable energy CFE/LFC IPP Other private

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

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;

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) 4.986 10.387 Hydro - CFE/LFC Hydro - private 11,325 MW 47 MW 1.365 25.617 532 12.460 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

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 2000 1500 1000 500 0 2007 2008 2009 2010 CFE CFE-IPP Private

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

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

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

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.

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

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

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

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 50.0 2009 E/70/AUT/98 2 Eléctrica del Valle de México 67.5 2009 E/201/AUT/2001 3 Eoliatec del Istmo 21.1 2008 E/322/AUT/2005 4 Bii Nee Stipa 22.9 2008 E/575/AUT/2007 Subtotal 161.54 712.41 435,995 Companies trat will reinforce existing CFE infraestructure Capacity Start-up date Company (MW) 1 Eurus 250.0 2008 2 Parques Ecológicos de México 80.0 2008 Subtotal 330.00 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 227.5 2010 2 Eoliatec del Pacífico 160.5 2010 E/685/AUT/2007 3 Eoliatec del Istmo 142.2 2010 E/322/AUT/2005 4 Gamesa Energía 288.0 2010 6 Preneal México 395.9 2010 7 Unión Fenosa Generación México 227.5 2010 8 Fuerza Eólica 50.0 2010 E/70/AUT/98 Subtotal 1,491.60 3,998,325 Total 1,983.14 8,691.02 5,638,778

New Capacity Program Company Voltage MW Sem 2/2010 Unión Fenosa Fuerza Eólica Desarrollos Eólicos 115 226.8 226.8 Sem 1/2011 Sem 2/2011 115 100 50 50 230 227.5 130 97.5 Sem 1/2012 Sem 2/2012 Preneal 230 395 50 122.5 50 122.5 50 Gamesa 115 235 143 93 Eoliatec Istmo Eoliatec Pacifico 115 142 72 70 230 160 80 80 Total MW 1,487 752 313 250 122.5 50

Power Generation Capacity 2012 In the period 2006-2012 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 3,150 530 1,640 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

Thank you very much fbarnes@cre.gob.mx