Finpro presentation material in Wind Power Opportunities in Latin America seminar, Vaasa 14.02.2013

1. Wind Energy Market and
Opportunities in Mexico
February, 2013
Finpro Mexico

2. Wind Energy – Current status in Mexico
• General Law on Climate Change (Ley General de Cambio Climático)
was implemented in October 2012
• A goal of cutting greenhouse gas emissions by 30% below business-as-usual levels
by 2020, and 50% by 2050
• Calls for a major increase in the use of clean energy sources to generate up to 35% of
electricity
• In 2012 the installed capacity of operating wind power reached 1,215
MW (compared to 519 MW in 2010), of which only 7% is operated by the
Mexican Federal Electricity Commission CFE (government monopoly),
while the rest is operated through licensees under self-sufficiency, small
producers and independent producers contracts.
• Investment in wind power in Mexico increased 68% between 2010 and
2011
• In July 2012, Gamesa Corp. Tecnologica SA (Spain) completed a 74MW wind power
farm in Oaxaca for Italy’s Enel Green Power SpA at an estimated cost of US$160m
• In October, three new wind farms (La Venta III, Oaxaca I and Piedra Larga) with a
combined capacity of 390MW became operational.
• Mexico has wind energy potential of 71,000 MW (Considering production
factors equal or above 20% according to SENER and IIE) and accounts
for more than the entire SEN current installed capacity. However, only
17% of this potential is currently used.
• Estimated wind power production Mexico by 2025 is 12 GW
Sources: Renewable energy world.com, Renewable Energy Mexico.com, Promexico
18/02/2013 © Finpro 2

3. Wind Energy – Capacity
• Wind energy capacity increased 598% between 2008-2012
Installed wind power capacity in Mexico (2005 – November 2012)
Accumulated installed capacity
New installed capacity during the year
Source: Mexican Association of Wind Power
18/02/2013 © Finpro 3

4. Regions with the highest wind power potential
There are several large areas with favorable • Isthmus of Tehuantepec (Oaxaca): it is the
location of most of Mexico’s wind parks. They
conditions for wind farm development with high have a capacity of 1,174 MW in operation. Also,
capacity factors and mean annual wind speeds there are seven projects under construction, with
above 8 m/s; some of them as high as 11 m/s a total estimated capacity of 1,248 MW. Due to
the excellent wind conditions, it is projected that
this region has a potential of more than 40,000
MW.11
• The Rumorosa (Baja California): It has a wind
potential that exceeds 5,000 MW. There are
currently three projects under construction with a
total installed capacity of 102 MW.
• The coast Gulf of Mexico: Currently, there are
currently projects under construction for a total of
225 MW in the states of Tamaulipas and
Veracruz.
• In the Northern and Central Region: Nuevo
León has installed 274 MW that will begin
operations during the next two years. San Luis
Potosí has a wind power station under
construction and it will have a capacity of 200
MW.
• The Yucatán Peninsula: it has wind potential
because of its excellent wind flows on the coast of
Quintana Roo and Cozumel Island.
Sources: Mexican Institute of Electric Investigation (2010), Global Wind Energy Council Annual Report 2011, Promexico
18/02/2013 © Finpro 4

5. Wind power projects in operation
Wind Power Projects in Operation in Mexico
Situation in December 2012
Projects in Operation in State of Oaxaca
Project Developer Turbines Start of Operation MW in operation in 2012
Sale CFE (Federal Comission of Electricity) Vestas 1994 1,6
Sale II CFE (Federal Comission of Electricity) Gamesa 2006 83,3
Ecological parks in Mexico Iberdrola Gamesa 2009 79,9
Eurus, phase I Cemex/Acciona Acciona 2009 37,5
Eurus, phase II Cemex/Acciona Acciona 2010 212,5
Bii Nee Stipa I Iberdrola Gamesa 2010 26,35
La Mata - La Ventosa Electrica del Valle de Mexico EDF-EN Clipper 2010 67,5
Ishtmus Wind Power Peñoles Clipper 2011 50
Ishtmus Wind Power II Peñoles Clipper 2012 30
Sale III CFE/Iberdrola Gamesa 2012 102
Oaxaca II, II, IV CFE/Acciona Acciona 2012 306
Oaxaca I CFE/EYRA Vestas 2012 101
Bii Nee Stipa II Gamesa/ENEL Gamesa 2012 74
Piedra Larga Phase I Renovalia/DEMEX Gamesa 2012 90
Bii Nee Stipa III Gamesa/ENEL Gamesa 2012 70
Total MW: 1331,65
Projects in Operation in other States
Project State Developer Start of Operation In operation in 2012
La Rumorosa I Baja California Government BC 2010 10
Arriaga Chiapas Group Salinas 2012 28,8
Total MW: 38,8
Source: Mexican Association of Wind Power
18/02/2013 © Finpro 5

6. Wind Energy – Companies in Mexico
Wind Energy Supply Chain • Some of the main wind farm developers in
Mexico are Iberdrola, Acciona, EDF,
Renovalia, Eyra, GSEER, Mcquaire
(Preneal), Enel, Next Energy de México,
Geomex, Sempra Energy.
• The leading companies in wind equipment
manufacturing are: Acciona, Vestas,
Gamesa, Clipper and Siemens.
• There’s also some local manufacturing of
components such as structural towers and
turbine blades (e.g. Trinity Industries,
Mitsubishi and VienTek)
• Several international companies like
Vestas, Gamesa and Acciona have
preliminarily shown interest in installing
manufacture in Mexico in the near future
• Also some Mexican companies (e.g.
Macimex) from other sectors have shown
interest in starting manufacture within this
booming industry
• A rule on national production will most
likely be applied in near future:
Source: Promexico, Revista Eólica de Vehículo Eléctrico, • 20% of wind mill parts must be produced in Mexico
18/02/2013 © Finpro 6