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MÉXICO

COMISION FEDERAL DE ELECTRICIDAD

“A Vertical Integrated Company”

EUGENIO LARIS February 1 2006

(2)

• National Electric System

• Future capacity requirements - POISE

• Energy Sources for Power Generation.

• Conclusions

(3)

National Electric System

CFE Overlook

(4)

Constitution: Article 27

….Generation, transmission, transformation,

distribution and supply

of electric energy, as

a public service, is reserved to the State. In this

matter no concessions will be granted to the

(5)

1992 Reform of the Electric Energy Public Service

Law

Private sector can participate in those

activities which do not involve public

service defined as:

• Independent Power production • Cogeneration

• Generation for self-supply • Import and Export

(6)

Two state Entities

• Comisión Federal de Electricidad

was

created in 1937 by a presidential decree, as a

decentralized agency of the federal

government

• Luz y Fuerza del Centro (LFC) was created in

1994, as a decentralized agency also.

• CFE is responsible for planning, constructing

and operating the national electric system.

LFC is responsible for the distribution in the

central area of México.

(7)

CFE, a State Company

ƒ

CFE is subject to regulation and supervision

on the part of the Mexican Government.

ƒ

The Secretary of Energy is the President of

the board.

ƒ

Each year the house of representatives

approves the federal budget, as well as the

financing program and budget for CFE.

ƒ

Tariffs are established by the “Secretaria de

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CFE: Mission

ƒ

Ensure the supply of electrical power in terms

of quality, quantity and price, with appropriate

diversification of power sources.

ƒ

Optimize the use of physical, commercial

infrastructures and human resources.

ƒ

Provide outstanding customers service.

ƒ

Protect the environment, promote social

development, and respect the values of

populations where electrical power is

provided.

(9)

CFE Organization

DIRECCIÓN GENERAL DIRECCIÓN GENERAL DIRECCIÓN DE ADMINISTRACIÓN DIRECCIÓN DE ADMINISTRACIÓN DIRECCIÓN DE PROYECTOS DE INVERSIÓN FINANCIADA DIRECCIÓN DE PROYECTOS DE INVERSIÓN FINANCIADA DIRECCIÓN DE OPERACIÓN DIRECCIÓN DE OPERACIÓN DIRECCIÓN DE FINANZAS DIRECCIÓN DE FINANZAS DIRECCIÓN DE MODERNIZACIÓN Y CAMBIO ESTRUCTURAL DIRECCIÓN DE MODERNIZACIÓN Y CAMBIO ESTRUCTURAL SUBDIRECCIÓN DE TRANSMISIÓN SUBDIRECCIÓN DE TRANSMISIÓN SUBDIRECCIÓN DEL CENACE SUBDIRECCIÓN DEL CENACE SUBDIRECCIÓN DE GENERACIÓN SUBDIRECCIÓN DE GENERACIÓN SUBDIRECCIÓN DE DISTRIBUCIÓN SUBDIRECCIÓN DE DISTRIBUCIÓN SUBDIRECCIÓN TÉCNICA SUBDIRECCIÓN TÉCNICA 3 SUBDIRECCIONES 3 SUBDIRECCIONES 3 SUBDIRECCIONES 3 SUBDIRECCIONES SUBDIRECCIÓN DE PROGRAMACIÓN SUBDIRECCIÓN DE PROGRAMACIÓN
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CFE in Figures

COMISIÓN FEDERAL DE ELECTRICIDAD 9 Installed Capacity: 46,686 MW (Total National

Capacity: 52,027 MW)

9 218 Power Plants, 637 Units

9 43,950 Km High Tension Transmission Lines 9 632,400 Km Medium Tension

9 171,760 MVA Transformation Capacity

9 13 Distribution areas serving 22.3 million customers 9 78,900 Active Workers

CFE is the second largest Mexican company, with total assets of 57,300 million dollars, a capital of 32,650 million dollars and sales of 11,320 million dollars.

(11)

5 Regions of Generation 46,686 MW in 218 Power Plants* NORTHWEST NORTH WEST CENTRAL SOUTHEAST

* It includes hired Independent Power Producers of Energy.

CFE: Regions of Generation

(12)

National Electric System

10 530.1 Hydroelectric

218 Power Plants, with 637 Power Units MW Power Plant Type 47 549.6 TOTAL 152.8 Diesel 961.7 Geo & Wind

1 364.9 Nuclear 2 100.0 Dual 2 600.0 Coal 2 818.5 Gas Turbine 4 776.2 Combined Cycle 8 262.9 IPP 13 982.5 Conventional

The national electric system has 47,550 MW installed capacity,

864 MW belong to L&FC and 46,686 MW to CFE including

IPP’s. (Jun 2005) Conventional Steam 29.41% Dual 4.42% Coal 5.47% Combined Cycle 10.04% Hydroelectric 22.15% IPP 17.38% Gas Turbine 5.93% Diesel 0.32%

Geo & Wind 2.02%

Nuclear 2.87%

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2005 Sales (GWH) and Users

2005 Sales (GWH) and Users

Industria 58.8% Servicios 3.3% Comercial 6.9% Agrícola 5.5% Residencial 25.5% Total Sales 185 TWH Users 22.3 millions Residencial 87.8% Servicios 0.7% Agrícola 0.5% Industrial 0.6% Comercial 10.4%

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Northwest North Northeast Western Oriental Peninsular BC Central Substation Line of 400 KV Line of 230 KV Line of 115 KV Line of 138 KV BCS

Transmission Lines and Substations

9 Transmission areas

43,950 km. high tension 632,400 km. medium tension

(15)

CFE: Distribution Divisions

CFE: Distribution Divisions

22.3 Million clients 13 Distribution Divisions Baja California Northwest North North Golf Bajío Central Golf Jalisco Center South Central East East Southeast Center West

(16)

Future Capacity Requirements

-

(17)

(POISE).-POISE

Based on econometric models, CFE defines the investment program with the lowest cost for the electric sector. The Construction and Investment Program “Programa de Obras e Inversiones del Sector Eléctrico” (POISE) defines all the electric infrastructure needed for the next ten years period. This document is annually updated based on:

» Historic evolution.

» Expected population Growth. » Regional demand growth.

» Economic growth scenarios. » Power Generation Technology

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Growth Scenarios

5.2 4.3 2.8 Estimate 2005-2014 High Planned Moderate

GNP

(%) Scenario High Planned Moderate

Electric Power

Consumption

(%) Scenario 5.9 5.2 4.2 Estimate 2005-2014
(19)

50 100 150 200 250 300 350 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013

Power Consumption

294 in 2014 177 in 2004 57 in 1980 TWh 5.22% 5.2%
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20 Free

5698 MW Wind & Geothermal

705 MW Gas Turbine 504 MW Coal 648MW Hydroelectric 2244 MW Combined Cycle 11730 MW 0 2000 4000 6000 8000 10000 12000 14000 PO W E R PL A N T T YPE NET CAPACITY º Power Plants: 59 Total Capacity: 21,529 MW 5 in Operation 8 in Construction 3 in Bid process

Capacity Requirements Program (2005-2014)

(125 MW GEO and 580 MW WIND)

This program is the result of the “POISE”

and takes into consideration the available energy sources.

(21)

Public Service: 21,529 MW Valladolid III (525 MW) Altamira V (1,121 MW) Tuxpan V (495 MW) La Venta II (85 MW) Conversión El Encino TG/CC (65MW) 2006 5 2,292 Tamazunchale (1,135MW) El Cajón U1 y U2 (750 MW) Baja California Sur II (43 MW)

2007 3 1,928 Baja California

(252 MW)

San Lorenzo Conversión TG/CC (130 MW )

2008 3 481 La Venta III (99 MW) Central (V. de México) (373 MW) Agua Prieta II (635 MW) 2009 7 1,850 Tuxpan Conversión TG/CC (89 MW ) Norte (392 MW) Guerrero Negro III (10 MW)

La Venta IV (99 MW) Baja California II SLRC-(252 MW) La Venta V (99 MW) Pte. Juárez Conv.

TG/CC (82 MW)

Manzanillo I Rep U1 (445MW) Baja California III

(246 MW)

2010 8 2,293 Norte II

(647 MW)

Carboeléctrica del Pacífico (648 MW) Cerro Prieto V (100 MW) Humeros (25 MW) La Venta VI (99 MW) Santa Rosalía (14 MW) Manzanillo I Rep U2 (445MW) 2011 6 1,630

Baja California Sur III (36 MW)

Tamazunchale II (663 MW) V. de México (373 MW) La Parota (897 MW) Manzanillo II Rep U1 (445 MW) Noroeste (638 MW) Baja California IV (252 MW)

Baja California Sur IV (36 MW)

2012 9 4,037 Guaymas (575 MW) Tamazunchale III (663 MW) Guadalajara I (434 MW) La Venta VII (99 MW) Manzanillo II U2 (445 MW) Norte III (647 MW) 2013 6 3,059 Central III (535 MW) Baja California V (243 MW) Guadalajara II (434 MW) Dos Bocas (755 MW) Mérida IV (671MW) Baja California Sur V (36 MW)

2014 7 2,890 Infiernillo (199 MW) Villita Ampliación (398 MW) Baja California VI (243 MW) Dos Bocas II (755 MW) Norte IV (588 MW) Río Bravo IV (500 MW) La Laguna II (498 MW) Presa Reguladora Amata

(0 MW)

Hermosillo Conversión TG/CC (88 MW)

2005 5 1,127

Baja California Sur I (41 MW)

Ciclo combinado Hidroeléctrica

Combustión Interna Tipo Diesel Turbogas

Libre Eolica Carboeléctrica

Geotermoeléctrica

(22)

Present and Future Power Generation Capacity of the Electric Sector

Planning

Scenario.-1. Self supply and cogeneration not included

2. This portion will be defined later within the 10 year period, some options are: combined cycle, coal fired, nuclear and renewable energies.

3. Includes distributed generation by LyF. December 2014: 64,210 MW3 December 2004: 47,550 MW1 Un committed, 9.60% Internal Combustion, 0.40% Gas Turbine, 5.10% Hydroelectric, 19.90% Geothermal and Wind, 2.60% Nuclear, 2.10% Conventional Steam, 12.20%

Coal & F.O., 3.30% Coal Fired, 5.10% Combined Cycle, 39.70% 2 , Internal Combustion, 0.32% Gas Turbine, 5.93% Hydroelectric, 22.15% Geothermal and Wind, 2.02% Nuclear, 2.87% Conventional Steam, 29.41%

Coal & F.O., 4.42%

Coal Fired, 5.47%

Combined Cycle, 27.42%

(23)

Energy sources for Power

(24)

Generation.-Available Energy Sources

a)

Non renewable sources, Fossil: Fuel oil,

diesel, natural gas and coal.

b)

Non renewable, non fossil: Nuclear

c)

Renewable Energies: Hydroelectric,

(25)

a) Fossil Fuel - Sources

Salina Cruz PLD PGU, PGD TPO GAO MZD MAM, MND PEO Import PUP PJZ Import Minatitlán MDA VAD LRA, NCM TUV Madero ALT PRI Tula TUL VAE VDR RIB LED Salamanca SLM Cáctus DBO MTY, JER HUI GPL Symbols

Convetional Steam Plant CC Plant GT Fuel Oil RE FVL SYC Cadereyta

(26)

Potencial Sources of Gas

SAMALAYUCA EL ENCINO TORREON DURANGO ROSARITO EHRENBERG LNG TOPOLOBAMPO LNG ROSARITO LNG LIBERTAD DAGGET ROCKIES CHEYENE SAN JUAN PERMIAN KEYSTONE PERMIAN WAHA WILCOX HUECO HOUSTON BOB WEST SOUTH TEXAS REYNOSA LNG ALTAMIRA PALMILLAS CHINAMECA SOUTH TEXAS GAS LANKAHUASA WILCOX LNG MANZANILLO SALAMANCA LNG LAZARO CÁRDENAS LOS RAMONES BURGOS SONDA DE CAMPECHE (CANTAREL) GOLFO CENTRO
(27)

a) Fossil Fuel – Fuel Oil and Coal

1.

Fuel Oil and Diesel

All the national production of fuel oil is used for the

production of energy, it is the most expensive and

has ecological problems. Therefore, the POISE

does not include new conventional power plants

using fuel oil. Diesel is included only in small

quantities.

2.

Coal

CFE uses the totality of the Mexican production of

coal. New coal fired power plants will have to use

imported coal, which is a competitive fuel that

entails minor ecological problems and is a viable

solution for large generating capacities. The

Program includes coal fired plants

(28)

a) Fossil Fuel - Gas

3. Gas

There are additional sources of natural gas

in Mexico not yet exploited. Moreover, the

LNG technology is available and gas

deposits can be contracted abroad at

competitive prices. Gas generation is less

pollutant and can be developed in great

quantities at low prices. Large scale gas

power generating projects are feasible and

are widely used in the POISE.

(29)

b) Non Renewable, non Fossil Nuclear Energy in the World.

Nuclear energy generation has regained the attention of the developed countries as a real option to contribute to reduce CO2 emissions.

™ The International Atomic energy Organization (IAEO) predicts the construction of eight 1000 MW units, in the next 15 years.

™ China has 6.4 GW installed. In the year 2020 its installed capacity will be between 32 and 40 GW. Other countries like Russia, India and some European Union countries will include the return of Nuclear energy in their Energy polices.

™ The USA has 104 reactors installed, equivalent to 19.9% of their total electric energy generation, and plans to install a new nuclear plant to start commercial operation in the first years of the next decade.

™ Third generation (ABWR & EPR) reactors have standardized design which reduces the investment costs to approximately one thousand dollars per kW and overall project time is 7-9 years.

(30)

In Mexico, CFE’s Laguna Verde Power Plant will be upgraded to add 20% of its present capacity (units 1 & 2).

™ A new nuclear station is under study by CFE, it may be in commercial operation after 2015, considering the time it takes for the social acceptance, design, bid process and construction. For this technology we depend on imported enriched uranium.

™ In a mid to long term future this technology can produce large amounts of energy.

b) Non Renewable, non Fossil Nuclear Energy in Mexico

(31)

c) Renewable Energies

The renewable sources available to CFE for

power generation are:

• Hydroelectricity

• Wind

• Geothermal

(32)

National electric System (SEN) 2 0 0 4

Number of Power Plants 79

Number of Units 223

Capacity 10,530 MW

Percentage of the total capacity 22.15 %

Energy Generated 25,075 GWh

Percentage of Generation 15.56 %

Only 20% of the Hydroelectric Potential is used

Hydroelectric Power

(33)

Future Projects (OPF)

Hydroelectric – Future Projects

Year C.O.D.

El Cajón 750 MW 2007

La Yesca 746 MW 2011

La Parota 900 MW 2012

La Villita (New units) 400 MW 2014

Infiernillo (Up grade) 200 MW 2014

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Cancún Cozumel Istmo de Tehuantepec Veracruz Mazatlán Hidalgo Zacatecas Guerrero Negro López Mateos San Quintín La Rumorosa La Venta La Venta II Potential Sites Installed Projects (2.12 MW)

Wind projects under construction (83.3 MW)

Wind Potential in Mexico

(1500-2500) MW * (1000-2000) MW (800-1500) MW (1000-1500) MW (1000-1500) MW (2000-3000) MW * Estimated Potential: > 7000 MW

(35)

0.85-2.5 0.85-2.5 0.85-2.5 0.85-2.5 0.85-2.5 0.85 Capacity range per unit

(MW) 578.3 TOTAL 2012 99 IPP LA VENTA VII 2011 99 IPP LA VENTA VI 2010 99 IPP LA VENTA V 2009 99 IPP LA VENTA IV 2008 99 IPP LA VENTA III 2006 83.3 OPF LA VENTA II Year Total Capacity (MW) Contract Type Project

Period 2005 – 2014

Wind Energy - Future Projects

This program in subject to increase in the future, however it will not make a large contribution to the national demand.

(36)

Geothermal Energy

Mexico has more than 1400 thermal potential sites distributed in 27 states of the country specially in the neovolcanic axis which possesses a geothermal potential estimated in 1000 MW. Mexico has the third largest geothermal installed capacity in the world.

Presently, the effective installed capacity is:

Mexicali, Baja California 720 MW

Los Azufres CD. Hidalgo, Mich. 195 MW

Humeros, Puebla 35 MW

Tres Vírgenes, Mulegé, Baja California Sur 10 MW

The geothermal projects scheduled to commence commercial operation in year 2010 are:

Cerro Prieto V in Mexicali, Baja California: 100 MW.

(37)

Solar Energy

This technology is in development stage having very limited potential to satisfy the national demand.

There are several small

photovoltaic installations throughout the country.

CFE is planning the installation of an integrated solar-combined cycle system (ISCCS); the project will be tendered in 2006 under the Financed Public Works Scheme (OPF) it will consist of a 560 MW combined–cycle plant, integrated with a 25 – 30 MW parabolic solar field. The site will be located in the northwestern part of the country, near the border with the USA.

(38)

Biomass

Is a new technology in its early development stage,

there are a few installations at the experimental

level, there are also some small capacity power

generating stations using the gases generated by

garbage confinements. It is a very limited technology

to satisfy the Mexican energy demand.

(39)
(40)

Conclusions.-Conclusions

1. To fulfill the demand in the next ten years, it is necessary to install 21,529 MW of new capacity.

2. The planning model is based on the availability of fuels, costs and time of constructions, and results in a growth based mainly in Natural Gas.

3. The POISE seeks an energy diversity. The 2006-2015 POISE, will try to restrict the use of natural gas to no more than 50% of the generation capacity, giving a major boost to energetic diversity.

4. The Capacity requirements program hasn’t

committed 5,700 MW to any particular technology. Based on future trends and developments, and fuel prices, it is expected that many of these, will be based on natural gas, although some of this capacity could be coal, nuclear, hydroelectric and wind.

(41)

Conclusions

5. The Ministry of Energy is encouraging the use of renewable energies to a great scale through a program called “PERGE” (Programa de Energía Renovable a Gran Escala) designed by SENER and The World Bank.

6. It will be convenient for the Mexican electric system and companies that conform the system, to establish collaboration agreements with other countries with greater advances in renewable energy.

(42)

References

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