VIEW FROM THE TOP |
MORE TRANSMISSION LINES ARE NEEDED TO BOOST WIND GENERATION LEOPOLDO RODRÍGUEZ President of AMDEE
Q: From a technological perspective, what is the main
Q: Which market scheme is best suited for the development
hurdle for wind energy development in Mexico?
of wind energy projects?
A: As wind resources can only be found in specific
A: Wind energy projects manage high volumes of generation
regions of Mexico, AMDEE has identified saturation
in Mexico. This technology is benefiting from PPA schemes and
and bottlenecks in several nodes across the country.
the long-term electricity auctions. Bilateral private contracts
Twelve years ago, the only region that was attractive for
are gaining traction because the prices offered by wind
investment was the Isthmus of Tehuantepec. Today, wind
projects are at least as competitive as conventional energy
projects are present in 11 states, with the strongest growth
sources and usually, even more competitive. Additionally, they
taking place in Tamaulipas, Coahuila and Nuevo Leon. The
represent long-term price certainty. Long-term contracts can
Ministry of Energy’s PRODESEN 2018-32 establishes the
be established because O&M costs are low and there is no fuel
requirement of new transmission lines but these have
in between, which means low volatility. Under the previous
not been built at the needed pace. This infrastructure
regulatory framework, it was very not easy for small or
has to be fortified, not only to transmit energy from the
medium sized consumers to participate in the PPA structure.
generation facility to the consumption point but to design a robust electricity network that allows the exchange of
Before, the off-taker had to become partner of the project
energy between regions. The energy mix has significant
in question. It was a game in which only big players
participation of wind and solar technologies and even
could participate. Now, every consumer can participate
though their generation profiles are different, they are
without becoming a partner in the project. Before the
complementary. When exchanging energy between
implementation of the new energy model, we were used
regions, we can minimize the dependence on other
to having fixed prices for at least one month but now these
carbon-based energy sources. A collaboration between
prices change every hour. We also still have a methodology
public and private entities is needed to finance and comply
to define electricity tariffs and this is limiting smaller
with these transmission requirements.
consumers’ participation in bilateral contracts.
Q: What role will renewable energy and storage play in the
Long-term electricity auctions allow the purchasing parties,
electrification of the Mexican energy system?
mainly CFE Suministro Básico, to fulfill their energy needs
A: In a recent study carried out by AMDEE, the Commission
without the need of investing. These projects attract the best
of Private Sector Studies for Sustainable Development
possible prices and are located in the regions where they are
(CESPEDES), the Mexican Association of Solar Energy
required to solve supply bottlenecks. Under these auctions,
(ASOLMEX) and Iniciativa Climática de México, it was
several projects are awarded under the same scheme and at
determined that by 2024 there should be 300,000 electric
the same time, which is a big difference from the traditional
vehicles in Mexico. At the same time, internal combustion
public tenders where a single project is awarded, limiting
engines and electric vehicles will reach cost parity. The
the use of more than one technology. Long-term electricity
electricity sector has to be prepared to satisfy this
auctions have proven to be a very effective mechanism to
demand and a great percentage of it will be provided by
attract and award clean technologies for power generation
renewable energy and energy storage systems. Batteries
at prices that have broken world-record lows.
are valuable elements of the electricity system. In case of a failure in the generation facility, batteries could supply energy for a while. This technology also provides
The Mexican Wind Energy Association (AMDEE), founded in
voltage and frequency regulation providing support to
2005, brings together developers, manufacturers and service
the grid and reducing the need for transmission lines in
providers to represent common issues before the authorities,
several cases.
society and economic players related to the wind energy sector
207
