MEXICO’S NEW ENERGY MODEL

OCTOBER 24, 2015

CESAR CONTRERASCHIEF OF STAFF

DEPUTY SECRETARIAT FOR PLANNING AND ENERGY TRANSITION

INTRODUCTION

IN 2012, MEXICO IS RESPONSIBLE FOR 1.37% (436 MTCO2) OF GLOBAL CO2 EMISSIONS GENERATED FROM FOSSIL FUELS.

FUENTE: IEA, 2014.

ChinaEE.UU.

IndiaRusiaJapón

AlemaniaCorea

CanadáIrán

Arabia SauditaReino Unido

BrasilMéxico

IndonesiaAustralia

SudáfricaItalia

FranciaTurquíaPolonia

8,2065,074

1,9541,659

1,223755

593534532459457440436435386376375334302294

CO2 EMISSIONS FROM FUEL COMBUSTION(MEGATONS)

SOURCE: QUINTA COMUNICACIÓN NACIONAL DE MÉXICO ANTE LA CONVENCIÓN MARCO DE LAS NACIONES UNIDAS SOBRE EL CAMBIO CLIMÁTICO

ENERGY SECTOR IS CRUCIAL TO BUILDING A SUSTAINABLE ENERGY ECONOMY

INTRODUCTION

PATH TO GREEN GROWTH

2015 2030

MEXICO ADOPTED AN UNCONDITIONAL INTERNATIONAL COMMITMENT TO CARRY OUT MITIGATION MEASURES…

INDC

REDUCTION OF 22% OF ITS GHG EMISSIONS BY 2030AND 51% OF BLACK CARBON

ON MARCH 2015, MEXICO PRESENTED THE INTENDED NATIONALLY DETERMINED CONTRIBUTIONS (INDC)

INDC

ENERGY SECTOR CONTRIBUTION

I. OIL AND GAS

II. ENERGY EFFICIENCY

III. CLEAN POWER GENERATION

INDC ENERGY SECTOR CONTRIBUTION

COMPONENTS MAIN DRIVERS

o COGENERATION (PEMEX: 9 REFINING AND PETROCHEMICAL PLANTS)

o 15% REDUCTION IN METHANE EMISSIONS (FLARING AND LEAKS)

o REPLACE HEAVY FUELS WITH NATURAL GAS

o CARBON CAPTURE, USE AND STORAGE

o STATE PRODUCTIVE ENTERPRISES

o STRENGTHENING THE REGULATORY BODIES

o TECHNICAL BODIES IN CHARGE OF CREATING NEW MARKETS (CENAGAS)

o SUSTAINABILITY AND ENVIRONMENTAL PROTECTION (ASEA)

o CCUS TECHNOLOGY ROADMAP

I. OIL AND GAS

INDC ENERGY SECTOR CONTRIBUTION

COMPONENTS MAIN DRIVERS

o STANDARDS FOR ENERGY EFFICIENCY AND LOW EMISSIONS

o PUBLIC POLICIES TO PROMOTE ENERGY EFFICIENCY

o SPECIAL PROGRAM FOR THE SUSTAINABLE USE OF ENERGY (PRONASE)

o NATIONAL TRANSITION STRATEGY FOR LOW CARBON AND CLEAN FUELS

o STRENGTHENING THE REGULATORY FRAMEWORK (NOMS)

o PROGRAMS:– REPLACEMENT OF EQUIPMENT

AND APPLIANCES IN SME– DIAGNOSTIC IN 32

MUNICIPALITIES– LIGHTING IN RURAL REGIONS

II. RESIDENTIAL AND COMMERCIAL

INDC ENERGY SECTOR CONTRIBUTION

POWER GENERATION SUSTAINABLE USE OF ENERGY

NATIONAL TRANSITION STRATEGY FOR LOW CARBON AND CLEAN FUELS

INDC ENERGY SECTOR CONTRIBUTION

COMPONENTS MAIN DRIVERS

o 35% CLEAN ENERGY BY 2024o GEOTHERMAL GENERATIONo PUBLIC POLICIES TO PROMOTE

CLEAN ENERGYo REPLACING HEAVY FUELS

WITH NATURAL GASo REDUCE TECHNICAL LOSSES

IN THE NATIONAL ELECTRICITY SYSTEM.

o NEW LEGAL FRAMEWORK (LIE, LEG, LGCC, LAERFTE)- NEW ELECTRICITY

MARKET - STATE PRODUCTIVE

ENTERPRISE o SPECIAL PROGRAM FOR REo PRODESENo INVESTOR INFORMATION

(INERE)o R&D AND TRAINING OF HUMAN

RESOURCES

III. CLEAN POWER GENERATION

POTENTIAL: DIRECT IRRADIATION

DURING JUNE*

SOURCE: SENER, INVENTARIO NACIONAL DE ENERGÍAS RENOVABLES

RENEWABLE RESOURCES: SOLAR

INSTALLED CAPACITY 56 MW (0.1% OF TOTAL) POWER GENERATION: 85 GWH (0.03% OF TOTAL) 9 POWER PLANTS

CURRENT INSTALLED CAPACITY

REGULATORY FRAMEWORK

NEW MARKET (CFE-PEMEX / CENACE-CENAGAS)

INVESTMENTS / TRANSPARENCY

CLEAN INDUSTRY (ASEA, CELS, LEG)

R&D + HUMAN TALENT

FINANCIAL MECANISMS

FINAL COMMENTS

FINAL COMMENTS

ENERGY

ECONOMIC COMPETITION

TELECOMMUNICATIONS

FISCAL

FINANCIAL

LABOR

EDUCATIONAL

HABEAS CORPUS ELECTORAL POLITICS

TRANSPARENCY

DEMOCRACY AND FREEDOM

INCREASE PRODUCTIVITY

RULE OF LAW

NATIONAL CODE OF CRIMINAL PROCEEDINGS

OBJECTIVES

MEXICO’S NEW ENERGY MODEL

OCTOBER 24, 2015

CESAR CONTRERASCHIEF OF STAFF

DEPUTY SECRETARIAT FOR PLANNING AND ENERGY TRANSITION

FUENTE:INEGI

OFERTA Y DEMANDA GLOBAL DE BIENES Y SERVICIOS(PARTICIPACIÓN PORCENTUAL)

1995 2000 2005 2010 2014 2015

CONSUMO PRIVADO 65.18 70.82 67.19 67.01 68.09 68.66

CONSUMO DE GOBIERNO 13.17 11.25 10.68 11.66 12.20 12.57

FORMACIÓN BRUTA DE CAPITAL FIJO 15.08 20.93 21.18 21.13 20.90 20.75

EXPORTACIONES 25.17 26.28 26.23 29.87 32.56 33.15

IMPORTACIONES 20.94 26.85 27.99 31.07 33.47 34.36

VARIACIÓN DE EXISTENCIAS 1.86 1.60 1.50 0.92 0.89 0.87

PRODUCTO INTERNO BRUTO 100.00 100.00 100.00 100.00 100.00 100.00

REFORMA ENERGÉTICAAVANCES EN LA IMPLEMENTACIÓN

FUENTE: INEGI

* ENERGÉTICOS Y TARIFAS AUTORIZADAS POR EL GOBIERNO (NO SUBYACENTE) ** EXCLUYE PETRÓLEO Y CON SERVICIOS** INCLUYE GENERACIÓN, TRANSMISIÓN Y DISTRIBUCIÓN DE ENERGÍA ELÉCTRICA, SUMINISTRO DE AGUA Y DE GAS POR DUCTOS AL CONSUMIDOR FINAL

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ÍNDICE DE PRECIOS AL CONSUMIDOR(VARIACIÓN % ANUAL)

GENERAL

ENERGÍA*

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GENERAL**

ENERGÍA*

**

ÍNDICE DE PRECIOS AL PRODUCTOR

(VARIACIÓN % ANUAL)

REFORMA ENERGÉTICAAVANCES EN LA IMPLEMENTACIÓN

FUENTE: SISTEMA DE INFORMACIÓN ENERGÉTICA CON INFORMACIÓN DE CFE.

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PRECIOS MEDIOS DE ENERGÍA ELÉCTRICA POR SECTOR TARIFARIO

(VARIACIÓN % ANUAL)

RESIDENCIAL: 110.76 C/KWH

INDUSTRIAL: 123.00 C/KWH

TOTAL: 130.65 C/KWH

COMERCIAL: 268.94 C/KWH

SERVICIOS: 253.74 C/KWH

REFORMA ENERGÉTICAAVANCES EN LA IMPLEMENTACIÓN

INDC

INDC