5 CURRENT POLICY FRAMEWORK
5.3 Bioenergy legal framework
In February 2008, the Bioenergy Law was published in the Federal Official Gazette. This law states that activities related to bioenergy are considered to be in the national interest, contribute to comprehensive
Table 8: Clean power generation goals
2024 2035 2050
Clean energy goal 35% 40% 50%
Source: SENER
Note: The percentage refers to the total power generation of the national power system. The law does not directly refer to renewables for power generation, in spite of the definition of clean energy.
national development and help guarantee sustainable development of the rural sector. This legal framework is regulated by articles 25 and 27, fraction XX of the Mexi- can constitution. The Bioenergy Law contributes to the goals of energy diversification and sustainable develop- ment. It does so by promoting the production of inputs for biofuels and the production, commercialization and efficient use of the biofuels themselves.
The Bioenergy Law created the Bioenergy Interministe- rial Commission (Comisión Intersecretarial de Bioener- géticos), composed of the heads of relevant ministries with different interests in the matter. This commission designs and dictates guidelines for public policy related to bioenergy for further implementation by competent authorities.
The Bioenergy Interministerial Commission
has been created to analyse and dictate the
guidelines for public policy in bioenergy.
The regulatory framework established by the Bioen- ergy Law defines the requirements, procedures and periods for granting permits for the production, storage, transportation and commercialisation of bioenergy. It specifies the measures that must be followed to protect the environment during the industry’s development, and dictates sanctions for the different offences as stipulated in the legal framework. Failure to comply with permitting requirements may mean a permit is revoked.Guidelines defining the binding requirements for biofuel permits are shown in Table 9.
The Bioenergy Law outlines the regulation
for activities related to biomass, and seeks
to contribute to energy diversification and
sustainable development.
Following the energy sector reform published in the Federal Official Gazette, nine related laws were enacted and 12 other laws were modified because they are linked directly or indirectly with bioenergy. The laws directly related to the bioenergy sector are the Coordinated Energy Regulators Act, creating CRE, and the National Agency of Industrial Safety and Environmental Protec- tion for the Hydrocarbon Sector Act. This created a new agency, the National Agency for Industrial Safety and Environmental Protection of the Hydrocarbons Sector. This is better known as the Agency for Safety, Energy and Environment. This national agency is an administra- tive body separate from the Environment and Natural Resources Ministry. It is authorised to regulate and supervise the production, transportation, storage and industrial distribution of biofuels when they are directly related to diesel and/or gasoline mixing or prepara- tion processes. SENER is specifically authorised by the Bioenergy Law to grant and revoke permits related to production, storage, commercialisation, transportation and biofuels distribution through pipelines (the latter in conjunction with CRE).
Table 9: Bioenergy permit types Type of Permit
1. Production and storage of bioenergy such as anhydrous ethanol and biodiesel. 2. Commercialisation of bioenergy such as anhydrous ethanol and biodiesel 3. Transportation of bioenergy such as anhydrous ethanol and biodiesel. 4. Notice of production and storage of bioenergy exception.*
Source: SENER
Note: This table is based on the sixth of a number of guidelines for the grant of permits for producing, storing, transporting and commercialis- ing bioenergy such as ethanol anhydrous and biodiesel. This is directly related to the permit of production and storage of bioenergy. * According to the Bioenergy Law, exception notices are given when the maximum production capacity of any given plant reaches 500 litres, and maximum storage reaches 1 000 litres.
Table 10 provides an overview of the possible capacity of certain renewable energy technologies for power generation. The table separately indicates the probable capacity for geothermal and small hydropower (SENER, 2014a).
If probable capacity is considered, both geothermal and small hydropower (< 30 MW) offer a major resource op- portunity. According to the journal Hydropower & Dams, the theoretical potential for hydropower in Mexico is 49 GW. However, the economic potential is estimated at about half that at 27 GW based on today’s capacity factor as calculated from a total generation potential of 72 TWh/yr. This economic potential is more than twice the installed capacity in 2013. Thus another 15 GW could be utilised. In Mexico today hydropower capacity of at least 3.8 GW is planned (SENER, 2013a). In addition to the values shown in Table 10, the estimated tidal energy potential in the Gulf of California amounts to 26 GW (SENER, 2012c).
The estimated bioenergy supply potential in Table 11 for 2030 is based on a study (REMBIO, 2011) prepared by REMBIO and IRENA estimates (IRENA, 2014b). Accord-
ing to IRENA, Mexico’s total sustainable biomass supply potential (only including residues and excluding culti- vated biomass) through to 2030 is 626-1 012 PJ/year. The REMBIO estimate of 3 569 PJ is much higher – 1 063- 1 515 PJ/year. This is because it also includes 1 063 PJ of energy crops and 1 515 PJ of forest products in addition to residues. According to REMBIO estimates, forests present the highest bioenergy potential. Dedicated energy crops based on food crops are not considered in the IRENA analysis in view of the competition with land and increasing food demand in Mexico to 2030. Given Mexico’s efforts to reduce deforestation, only the residue and waste streams of the forest products are accounted for in the IRENA analysis.
The supply cost of biomass depends on the resource type, where the resource is located, where it is delivered and in which form it is transported. According to IRENA estimates, biomass supply costs for Mexico (including transportation costs of USD 2-3/GJ) range from USD 2.4/GJ for processing residues and biogas to around USD 4.6/GJ for harvesting residues. Wood residues and waste are estimated to cost around USD 3.3/GJ in 2030. However, given the size of the country and resource
Table 10: Renewable energy resource potential for power generation
Possible Probable Installed
capacity
(June 2014) Gene ration Capacity Generation Capacity Generation
(MW) (GWh/year) (MW) (GWh/year) (MW) (GWh/year)
Geothermal 7 422 52 013 5 730 45 175 823 6 168
Large hydropower (>30 MW) 5 630 4 504 - - 12 038 36 559 Small hydropower (<30 MW) - - 9 243 39 060 436 1 753
Wind 50 000 87 600 - - 1 899 4 546
Solar PV 5 000 000 6 500 000 - - 66 34
Source: National Renewable Energy Inventory (SENER, 2014a)
Note: The methodology used to determine this potential follows a similar approach to that employed to assess hydrocarbon reserves. Therefore probable capacity is not a share of possible reserves. Instead, the potential is cumulative. It does not include the potential for which generation permits have been granted nor resource already being exploited. It is estimated as follows:
● Possible capacity refers to theoretical potential for power generation based on indirect studies and generic assumptions that do not state
any technical or economic feasibility.
● Probable capacity denotes sites where some field studies have been carried out, but are not sufficient to prove technical and economic
viability.