Structure of the Mexican Power Sector

Although the Mexican federal constitution limits the participation of non-governmental entities in energy-related activities, regulatory changes starting in the 1990s, have made it possible for the private sector to build, own and operate (BOO) power generation facilities. The regulatory changes leading to this shift can be found elsewhere in the literature (see, for example, [36]; [37]). Recent growth in the installed capacity in the Mexican power sector has largely come from privately owned facilities. The structural shift in the Mexican power sector had three components. First, a policy initiative, which allowed independent power producers (IPPs) to make necessary investment in the infrastructure; second, the availability of resource, i.e., natural gas for use in the power sector; and third, the availability and competitiveness of the natural gas combined cycle technology, which enabled the IPPs to quickly install and operate the newer, more efficient generation capacity.

1999 2000 2001 2002 2003 2004 2005 2006 2007

Fig. 11.9 Installed power generation capacity in Mexico (Source: SENER [39])

1999 2000 2001 2002 2003 2004 2005 2006 2007

Fig. 11.9 Installed power generation capacity in Mexico (Source: SENER [39])

Historically, the Mexican power sector has been dominated by the state-owned public utilities, Comisión Federal de Electricidad (CFE), which is the largest state owned utility in Mexico, and Luz y Fuerza del Centro2 (LFC), which is primarily a transmission company operating mainly in the Mexico City metropolitan area. LFC owns some generation assets as well. As a result of the deregulation process, independent power producers (IPPs) have started to play a key role in the power sector, beginning with the 484 MWe plant in Merida in the state of Yucatán, which came online in 2000. Since then, the first decade of this century has seen a phenomenal growth of the role of IPPs in meeting the electricity demand in Mexico (Fig. 11.9). By the end of 2007, IPPs had a share of over one-fifth of the total installed capacity and contributed slightly less than one-third of total electricity generation (Fig. 11.10).

Was this article helpful?

0 0
Waste Management And Control

Waste Management And Control

Get All The Support And Guidance You Need To Be A Success At Understanding Waste Management. This Book Is One Of The Most Valuable Resources In The World When It Comes To The Truth about Environment, Waste and Landfills.

Get My Free Ebook


Post a comment