The document discusses prospects for developing a North American renewable energy market. It summarizes current energy pictures in the world, North America, and Mexico. It then outlines Mexico's regulatory energy framework and proposals that could help integrate renewable energy markets between the US, Canada, and Mexico, such as developing cross-border electric transmission corridors, establishing regional biofuel standards, and conducting joint wind potential mapping along borders. Overall, the document argues that a regional renewable energy market could increase energy security, lower costs, and support industry development across North America.

1. Towards a
North American
Renewable
Energy Market
Leonardo Beltran, MPA/ID
CEC-JPAC Session
Toronto, April 18, 2012

2. Content
1.- Energy picture
2.- Mexican regulatory energy framework
3.- Prospects for North America

3. Content
1.- Energy picture
2.- Mexican regulatory energy framework
3.- Prospects for North America

4. 1.- Energy Picture
Primary Energy Consumption*
(2010)
World North America
North
America Mexico
Asia 23% 6%
Pacific Canada
38% 11%
S. & Cent.
America
5%
US
Europe &
83%
Eurasia
Middle
25%
East
Africa
6%
3%
* Source: BP Statistical Review

5. 1.- Energy Picture
Primary Energy Consumption by Fuel*
(2010)
World North America
Nuclear
Nuclear
Energy Hydro Hydro
Energy
5% electricity electricity
8%
6% 5%
Renewabl Oil Renewabl
es 34% es Oil
1% 2% 37%
Coal
Coal 20%
30%
Natural Natural
Gas Gas
24% 28%
* Source: BP Statistical Review

6. 1.- Energy Picture
Electricity Generation*
(2010)
World North America
North
America Mexico
Asia 25% Canada 5%
Pacific 12%
38%
S. & Cent.
America
5%
US
Europe & 83%
Middle Eurasia
East 25%
Africa 4%
3%
* Source: BP Statistical Review

7. 1.- Energy Picture
Renewable Installed Capacity*
(%, MW, 2010)
Geothermal Canada Wind Mexico
4,011 769
Mexico
6% United
States
United
40,274
States
21%
World
73% World
199,523
* Source: BP Statistical Review

8. Content
1.- Energy picture
2.- Mexican regulatory energy framework
3.- Prospects for North America

9. 2.- Mexican regulatory
energy framework
Constitution – Articles: 25, 27, and 28
Acts and – Public Energy Service (A&R)
Regulation
– Usage of Renewable Energy and the Financing
of the Energy Transition (LAERFTE) (A&R)
– Energy Regulatory Commission
Energy Policy – National Energy Strategy
Documents
– National Strategy for the Energy Transition and
the Sustainable Use of Energy
– Special Program for the Use of Renewable
Energy 2009-2012
– Outlooks: Power, Crude Oil, Natural
Gas, Liquefied Petroleum Gas, Oil Related
Products, and Renewables

10. Content
1.- Energy picture
2.- Mexican regulatory energy framework
3.- Prospects for North America

11. 3.- Prospects for North
America
Installed Generating Capacity*
(GW)
Total Renewables
United States Canada Mexico United States Canada Mexico
1221
205
1049
157
119
82
180 137 40
129 19
71
2010 2035 2010 2035
* Source: US Energy Information Administration. International Energy Outlook 2011.

12. 3.- Prospects for North
America
Benefits of an integrated
renewable energy market
 Greater energy security and lower import
dependency
 Increased competition and lower electricity
bills
 Diversified generation portfolio
 Development of regional industries (supporting
and developers)
 Creation of research and development
regional networks
 Value creation and large capital investments

13. 3.- Prospects for North
America
Proposals towards a regional
renewable energy market
1. Electric transmission
corridor between Sonora and Baja California-Arizona-
California.
 Wind energy potential in the area of
La Rumorosa, Baja California, between 1.800 and 2.400 MW.
 The peninsula of Baja California is not connected to the
Mexican electricity grid and has only two interconnections
with California, with a capacity of 800 MW.
 Insufficient transmission lines on both sides of the border and
a congested system in California, limits the flow that could be
traded.
 First step, to develop a joint study of the electrical
system operators, to assess the impacts of incorporating large
amounts of intermittent power to the system, the dispatch
requirements, and stability of the grid.

14. 3.- Prospects for North
America
Proposals towards a regional
renewable energy market
2. Regional standard for biofuels.
 Pemex issued a tender for 50 to 230 million liters (ml) per
year over the next five years.
 USA estimates to consume about 67,600 ml of ethanol
by 2020 and Canada 3,600 ml.
 There is no regional criteria to ensure the quality or the
use of inputs that do not compete with food.
 Evaluate the feasibility of developing a regional
standard, first on cultivation, up to full standardization.

15. 3.- Prospects for North
America
Proposals towards a regional
renewable energy market
3. Regional wind map projection methods with
emphasis on border areas.
 In Ontario the potential in the Great Lakes area is
47,000 MW.
 In the border between California and Baja California
the potential range between 1,800 and 2,400 MW.
 Develop economic evaluation studies, environmental
and social impact assessments, with harmonized
analysis and simulation methods to evaluate the
potential of the region.

16. Towards a
North American
Renewable
Energy Market
Leonardo Beltran, MPA/ID
lbeltran@post.harvard.edu
CEC-JPAC Session
Toronto, April 18, 2012