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Renewable Energy

Overview

Renewable Energy Market

 

2010

2011**

2012 (estimated)

2013 (estimated)

Total Market Size

2,101.2

2,166.5

2,512.8

2,966.0

Total Local Production

317.8

325.7

334.4

343.3

Total Exports

318.6

328.9

339.5

350.4

Total Imports

2,102.0

2,169.7

2,517.9

2,973.1

Imports from the U.S.

865.7

901.4

1,050.7

1,240.8

Figures listed in USD millions

Wind Energy Market

 

2010

2011**

2012 (estimated)

2013 (estimated)

Total Market Size

824.0

848.1

1,147.2

1,551.5

Total Local Production

110.0

112.7

116.0

119.5

Total Exports

120.0

123.6

128.5

133.6

Total Imports

834.0

859.0

1,159.7

1,565.6

Imports from the U.S.

341.3

354.9

479.1

646.8

Figures listed in USD millions

Solar Energy market

 

2010

2011**

2012 (estimated)

2013 (estimated)

Total Market Size

737.2

758.5

784.3

811.0

Total Local Production

82.2

83.8

85.5

87.2

Total Exports

97.0

99.9

102.9

106.0

Total Imports

752.0

774.6

801.7

829.8

Imports from the U.S.

258.2

266.5

277.2

288.3

Figures listed in USD millions

Hydro Energy market

 

2010

2011**

2012 (estimated)

2013 (estimated)

Total Market Size

260.8

272.8

283.6

294.8

Total Local Production

73.6

75.8

78.1

80.4

Total Exports

41.9

43.6

44.7

45.8

Total Imports

229.1

240.6

250.2

260.2

Imports from the U.S.

118.0

129.9

135.1

140.5

Figures listed in USD millions

Geothermal Energy market

 

2010

2011**

2012 (estimated)

2013 (estimated)

Total Market Size

185.5

190.5

197.3

204.3

Total Local Production

41.2

42.2

43.3

44.4

Total Exports

49.9

51.7

53.0

54.3

Total Imports

194.2

200.0

207.0

214.2

Imports from the U.S.

100.9

104.0

107.6

111.4

Figures listed in USD millions

Biomass Energy market

 

2010

2011**

2012 (estimated)

2013 (estimated)

Total Market Size

93.7

96.6

100.4

104.4

Total Local Production

10.8

11.2

11.5

11.8

Total Exports

9.8

10.1

10.4

10.7

Total Imports

92.7

95.5

99.3

103.3

Imports from the U.S.

47.3

49.7

51.7

53.8

Figures listed in USD millions

** Based on statistics available from January to November 2011 (11 months)

Source of information: BANCOMEXT, Mexican Import/Export Bank statistics, Secretary of Economy Statistics, Mexico’s Central Bank officials, CFE, the National Energy Savings Commission, AMDEE (Asociación Mexicana de Energía Eólica), ANES (Asociación Nacional de Energía Solar), and representatives of U.S. companies in Mexico.

As illustrated in the tables above, the demand for imported renewable energy-related equipment and services will increase by approximately 4 percent in 2012 and 2013, while U.S. exports to Mexico will grow by the same amount in the same years. The only exception is wind power, which is the fastest growing renewable energy in Mexico at an estimated 35% growth in 2012 and 2013. Mexico grew from 3 MW of installed wind power capacity in 2005 to 1,108 MW in place by April 2012 and experts have defined a potential of at least 12,000 MW, which would reach 15% of the total energy generation by 2020.

Energy production and infrastructure will continue to be a priority for Mexico’s federal government during 2012, the last year of President Calderon’s administration. Given Mexico’s proximity to the United States, the absence of import duties on U.S. exports to Mexico (as a result of NAFTA) and the lack of manufacturing capacity currently in Mexico’s renewable energy industry, the market would likely be an area of distinct U.S. export competitiveness.

Best Prospects/Services

Energy sub-sectors: WindPower, Hydropower, Solar, Geothermal, and Biomass renewable energy sub-sectors continue to grow and represent opportunities for US exporters.

The industry’s growth has been driven primarily by government targets for renewable energy and the availability of a world-class wind resource in southern Mexico and coastal states, particularly those close to the border with the United States, which matches California’s demand for extra energy.. Mexico is modernizing at a fast pace and this is the right time to participate in this explosive growth. Additional efforts on sustainability include the governments of Mexico and the United States signing a Memorandum of Understanding in January 2012, outlining a program of technical collaboration to develop and expand Mexico’s Low Emissions Development Strategy with funding of $70M for the following five years.

Opportunities

A number of major projects will drive investment in the sector and offer opportunities to US companies either as contractors, sub-contractors, or suppliers of equipment/technology. During the first months of 2012, 650 MW of new capacity will be launched with projects such as La Venta III & Oaxaca I, II, III & IV. Afterwards, the next planned renewable power projects are:

Project / Capacity

Technology

Timing

Cerro Prieto (5 MW)

Solar

Q3 2012

Sureste I (300 MW)

Wind

2012

Sureste II (300 MW)

Wind

2013

Sureste III (300 MW)

Wind

2015

Sureste IV (300 MW)

Wind

2016

Rumorosa I (100 MW)

Wind

2014

Rumorosa II (100 MW)

Wind

2014

Rumorosa III (100 MW)

Wind

2015

Resources

Secretariat of Energy: http://www.energia.gob.mx

Federal Electricity Commission: http://www.cfe.gob.mx

Energy Regulatory Commission: http://www.cre.gob.mx

National Infrastructure Plan: http://www.infraestructura.gob.mx

Nat’l Commission for the Efficient Use of Energy http://www.conuee.gob.mx

Fund for Energy Saving-FIDE http://www.fide.gob.mx

AMDEE http://www.amdee.org

ANES http://www.anes.org/

For more information please contact:

Miguel Vazquez, Commercial Specialist (Renewable Energy)

Commercial Service, U.S. Embassy in Mexico City

Miguel.Vazquez@trade.gov