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Energy in Mexico

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Lamatalaventosa Wind Farm

Mexico total primary energy consumption by fuel in 2015[1]

  Coal (7%)
  Natural Gas (41%)
  Hydro (4%)
  Nuclear (1%)
  Oil (45%)
  Others (Renew.) (2%)

Energy in Mexico describes energy, fuel, and electricity production, consumption and import in Mexico.

In 2008, Mexico produced 234 TWh of electricity, of which, 86 TWh was from thermal power stations, 39 TWh from hydropower, 18 TWh from coal, 9.8 TWh from nuclear power, 7 TWh from geothermal power and 0.255 TWh from wind power.[2] Mexico is among the world's top oil producers and exporters.

In 2022, Mexico's total energy supply (TES) consisted of oil, accounting for 44.3%, with natural gas at 39.0%, and coal at 5.5%. Biofuels and waste constituted 5.0% of the total, while other renewables, such as hydro, wind, and solar, combined to form 4.8%. Nuclear energy contributed a minor portion, representing 1.5% of the overall energy supply.[3]

Overview

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Energy in Mexico[4]
Capita Prim. energy Production Export Electricity CO2-emission
Million TWh TWh TWh TWh Mt
2004 104.0 1,925 2,952 1,002 188 374
2007 105.7 2,143 2,920 723 214 438
2008 106.6 2,100 2,717 549 215 408
2009 107.4 2,031 2,559 492 218 400
2010 108.3 2,071 2,633 508 226 417
2012 109.2 2,165 2,654 418 250 432
2012R 117.1 2,191 2,547 266 246 436
2013 118.4 2,224 2,518 253 255 452
Change 2004-10 4.1% 7.6% -10.8% -49.3% 20.3% 11.6%
Mtoe = 11.63 TWh. Prim. energy includes energy losses

2012R = CO2 calculation criteria changed, numbers updated

Oil production

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A gas station in Puerto Vallarta
History of oil production in Mexico

The petroleum industry in Mexico makes Mexico the eleventh largest producer of oil in the world and the thirteenth largest in terms of net exports. Mexico has the seventeenth largest oil reserves in the world, and it is the fourth largest oil producer in the Western Hemisphere behind the United States, Canada and Brazil.[5][6] Mexico is a member of OPEC+ and the North American Free Trade Agreement.

The petroleum sector is crucial to the Mexican economy; while its oil production has fallen in recent years, oil revenues still generate over 10% of Mexico's export earnings.[7] Taxes on the revenues of the state-owned oil company Petróleos Mexicanos (Pemex) formed roughly 20% of all tax revenues collected by the Mexican government in 2022.[8]

While a significant contributor to the overall Mexican economy, the industry has been criticized as a driver of pollution[9] and environmental destruction.[10] In some cases, residents of extraction zones have expressed negative opinions regarding the effects that the oil industry has on their community.[10][11] In addition to this, issues such as corruption and fuel theft hinder operational efficiency.[10][12]

Renewable energy

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Example of Wind Farm in Oaxaca, Mexico.

Renewable energy in Mexico contributes to 26 percent of electricity generation in Mexico. As of 2009, electricity generation from renewable energy comes from biomass, hydro power, geothermal, solar power and wind. There is a long term effort established to increase the use of renewable energy sources. The amount of geothermal energy used and harvested, places Mexico as number four in the world.[13]

As the importance of clean sustainable energy becomes more prevalent, the country and government officials continue to invest in research and innovations to continue to allow Mexico to be a leading example of renewable energy. Predictions based on current energy standings lead the country to anticipate by 2035, the 26 percent renewable energy in Mexico will rise to 35 percent.

Not only will this prove a more sustainable future it also increases jobs in rural areas. Jobs increased by 14 percent within the last 8 years in the renewable energy sector. With the objection to create more in-home jobs for residents of Mexico, an increase in sustainable energy, results in lower demand for conventional fuels such as fuel oil, petrol gas, coal and natural gas. With lower demand for these fuels, mainly gasoline and diesel and on the rise jet fuel, this will result in a lower need for imports. With relying on fewer imports, national security is higher.

Geothermal power

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Mexico had the sixth greatest geothermal energy production in 2019.[14][15][16] Mexico is home to the largest geothermal power stations in the world, the Cerro Prieto Geothermal Power Station.

Wind power

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External images
image icon Oaxaca Wind Resource Map
image icon Northwestern Mexico Border Areas - 50m Wind Power

Mexico is rapidly growing its production of wind power. In 2016, its installed capacity had reached 3,527 MW,[17][18] increasing to 8,128 MW in 2020.[19]

In 2008, there were three wind farms in the country. The Eurus Wind Farm was the largest wind farm in Latin America.[20] 18 of 27 wind farms construction projects were based in La Ventosa[21] in the Isthmus of Tehuantepec in Oaxaca.[22] According to the Mexican Wind Energy Association, Mexico was predicted to progress to rank twentieth worldwide in wind capacity by the end of 2012, and to produce four percent of the country's total electricity production.[21] It also projected that the nation would have 12 GW (16,000,000 hp) of wind generation capacity by 2020, and would be able to provide fifteen percent of Mexico's production.[21] Brian Gardner, Economist Intelligence Unit's energy analyst, said, "With strong wind through the south, consistent sunlight in the north and a stable market, Mexico is well positioned for continued renewables growth".[21] Wind power is in partial competition with Solar power in Mexico.[23]

Regions of Mexico

Electricity

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As required by the Constitution, the electricity sector is federally owned, with the Federal Electricity Commission (Comisión Federal de Electricidad or CFE) essentially controlling the whole sector; private participation and foreign companies are allowed to operate in the country only through specific service contracts. Attempts to reform the sector have traditionally faced strong political and social resistance in Mexico, where subsidies for residential consumers absorb substantial fiscal resources.

The electricity sector in Mexico relies heavily on thermal sources (75% of total installed capacity), followed by hydropower generation (19%). Although exploitation of solar, wind, and biomass resources has a large potential, geothermal energy is the only renewable source (excluding hydropower) with a significant contribution to the energy mix (2% of total generation capacity). Expansion plans for the period 2006-2015 estimate the addition of some 14.8 GW of new generation capacity by the public sector, with a predominance of combined cycles.

In 2022, Mexico's electricity generation primarily came from four key sources: natural gas (56.8%), oil (13.5%), coal (6.8%), and renewables (19.5%)—which included hydroelectric power, wind energy, solar PV systems, geothermal energy, biofuels, and waste.[24]

Carbon capture and storage

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Mexico highly depends on the burning of its fossil fuels, and for the same reason, it is in its interest to look into mitigation solutions for its corresponding emissions. In the General Law on Climate Change on 2012, Mexico promised to reduce 20% of its greenhouse gas (GHG) emissions by 2020 and 50% by 2050, as well as in the Paris Agreement.[25] 19% of this new mitigation plan will be dedicated to carbon capture and storage and specifically 10% to the energy industry.

Energy Secretariat

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In Mexico, the Secretariat of Energy (Spanish: Secretaría de Energia) is the government department in charge of production and regulation of energy. This secretary is a member of the Executive Cabinet.

See also

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References

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  1. ^ "Statistical Review of World Energy (June 2016)" (PDF).
  2. ^ "Electricidad, SENER". Archived from the original on 2009-12-19. Retrieved 2009-12-19.
  3. ^ "Mexico - Countries & Regions". IEA. Retrieved 2024-04-10.
  4. ^ IEA Key World Energy Statistics Statistics 2015 Archived 2016-03-04 at the Wayback Machine, 2014 (2012R as in November 2015 Archived 2015-04-05 at the Wayback Machine + 2012 as in March 2014 is comparable to previous years statistical calculation criteria, 2013 Archived 2014-09-02 at the Wayback Machine, 2012 Archived 2013-03-09 at the Wayback Machine, 2011 Archived 2011-10-27 at the Wayback Machine, 2010 Archived 2010-10-11 at the Wayback Machine, 2009 Archived 2013-10-07 at the Wayback Machine, 2006 Archived 2009-10-12 at the Wayback Machine IEA October, crude oil p.11, coal p. 13 gas p. 15
  5. ^ "Energy: Mexico". World Factbook. CIA. June 20, 2014. Retrieved 2014-11-20.
  6. ^ International Energy Agency. (2023). Mexico - Countries & Regions. IEA.
  7. ^ Mexico Energy Data, Statistics and Analysis - Oil, Gas, Electricity, Coal Archived 2006-03-09 at the Wayback Machine
  8. ^ Mexico - Oil and Gas. International Trade Administration. (2023, November 5).
  9. ^   Granados Hernández, E., López  Andrade, X., Vega Rangel, E., Sosa Echeverria, R., Alarcón Jiménez, A. L., Fuentes García, G., & Sánchez Álvarez, P. (2021). Energy consumption and atmospheric emissions from refined petroleum in Mexico by 2030. Ingeniería Investigación y Tecnología, 22(1), 1–13.
  10. ^ a b c Cavazos-Arroyo, J., Pérez-Armendáriz, B., & Mauricio-Gutiérrez, A. (2014). Afectaciones y consecuencias de los derrames de Hidrocarburos en Suelos Agrícolas de Acatzingo, Puebla, México. Agricultura Sociedad y Desarrollo, 11(4), 539.
  11. ^ Aguilar León, I. (2018). Extracción de Petróleo Y Transformaciones Socioterritoriales. Regions and Cohesion, 8(1), 25–53.
  12. ^ Sandoval Ballesteros, I. E. (2023). Huachicoleo y neoliberalismo. Estudios Políticos, (60), 259–268.
  13. ^ Alemán-Nava, Gibrán S.; Casiano-Flores, Victor H.; Cárdenas-Chávez, Diana L.; Díaz-Chavez, Rocío; Scarlat, Nicolae; Mahlknecht, Jürgen; Dallemand, Jean-Francois; Parra, Roberto (2014-04-01). "Renewable energy research progress in Mexico: A review" (PDF). Renewable and Sustainable Energy Reviews. 32: 140–153. doi:10.1016/j.rser.2014.01.004. hdl:10044/1/40548.
  14. ^ "Federal Commission of Electricity of Mexico/Geothermal-electric production 2007".
  15. ^ Hiriart, Gerardo; Gutiérrez-Negrı́n, Luis C.A (2003). "Main aspects of geothermal energy in Mexico". Geothermics. 32 (4–6): 389–396. Bibcode:2003Geoth..32..389H. doi:10.1016/j.geothermics.2003.07.005.
  16. ^ IGA electricity generation for Mexico Archived 2009-05-08 at the Wayback Machine
  17. ^ Mexican wind energy association numbers
  18. ^ "IEA Wind Energy: Annual Report 2008" (PDF), www.ieawind.org, International Energy Agency, Chapter 23. Mexico, pp.239-251, Jul 2009, ISBN 0-9786383-3-6, archived from the original (PDF) on 20 July 2011
  19. ^ No es viable regresar a la Reforma Energética: ASOLMEX
  20. ^ Acciona Completes Assembly of LatAm’s Largest Wind Farm Latin American Herald Tribune.
  21. ^ a b c d "Which Country is Seeing the Biggest Growth in Wind Energy?". Sustainable Business.com. 14 May 2012. Retrieved 28 June 2012.
  22. ^ Duncan Wood, Samantha Lozano, Omar Romero & Sergio Romero. "Wind energy on the border — a model for maximum benefit" Woodrow Wilson International Center for Scholars, May 2012. Quote: "wind energy projects that have been developed in the southern state of Oaxaca. There, the wind currents that cross the Isthmus of Tehuantepec"
  23. ^ Mohit Anand (5 April 2016). "Solar Stuns in Mexico's First Clean Energy Auction: 1,860MW Won at $50.7 per MWh". Retrieved 12 April 2016.
  24. ^ "Mexico - Countries & Regions". IEA. Retrieved 2024-04-10.
  25. ^ "Building carbon capture technical capacity in Mexico". Global CCS Institute. Retrieved 2021-05-26.
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