Mexico, Photovoltaic technology status and prospects - Contribution to the Annual report 2005

Mexico
Photovoltaic technology status and prospects
Jaime Agredano, J. Huacuz Villamar
Electrical Research Institute (IIE)

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General Framework

Fig. 2 - PV pumping system provides drinkable water to rural communities.

Implementation of PV systems in Mexico during 2005 experienced a slower pace compared with previous years. Rural electrification still remains the main application. However, applications such as water pumping for small irrigation and livestock watering, seem to be levelling off as a result of the GEF-supported program for agricultural applications coming to an end this year. During its 5 year lifetime, this program, better known as the FIRCO program, has supported the installation of more than 1 700 small PV systems for agricultural applications (each under 3 kWp in capacity), On the other hand, new applications in the urban setting are emerging. Such is the case of the 30 kWp grid connected PV system, recently installed in Mexico City.
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National Programme

In December 2005 the Lower House of Congress approved a bill to create the law to foster the use of renewable energy resources in Mexico. Although not specifically addressing any renewable energy resource in particular, the bill carries elements that could positively impact the implementation of PV systems. For instance, it obliges the national electric grid operators to take up, at any time, electricity generated from intermittent renewable energy resources; mandates the creation of a Green Fund to provide incentives to feed renewable energy-based electricity to the national grid; and mandates the creation of a Fund to foster Emerging Technologies whose generating costs are not yet competitive with conventional alternatives.

Furthermore, a Rural Electrification Fund will be created to support projects with renewable energy in remote communities. The goal of the bill is to increase the contribution of renewable energy resources, other than large-scale hydroelectric power plants, to 8 % of the total electricity generating capacity of this country by the year 2012. This bill is yet to be ratified by the Senate, which is expected to happen in early 2006.

Recent studies carried out in preparation of a forthcoming rural electrification program with renewable energy, to be co-funded by the GEF, the World Bank and the Mexican Government, show that PV would be the least expensive alternative in more than 51 % of the almost 9 500 targeted communities in four southern states.

Fig. 1 - San Juanico PV-Wind Diesel Hybrid and mini-grid system in operation since 1999.

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Research and Development

Fig. 3 - The Green Corner: First privately owned PV grid connected system in Mexico.

The national electric utility, Comision Federal de Electricidad (CFE), has launched several initiatives in preparation for a large-scale effort to deploy grid-connected PV systems. Among them are development of technical guidelines for interconnection with the national grid, studies about the impact of PV neighbourhoods on the grid and studies on potential economic benefits for domestic PV users; given the current structure of the electricity tariff scheme. A pilot neighbourhood of 100 houses with PV roof tops of 1 kW each is planned for implementation in northwest Mexico during the year 2006.
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Implementation

The first privately owned grid-tied PV system is on line since December 2005 in Mexico City. System performance monitoring and evaluation is being carried out by the Electrical Research Institute (IIE) in collaboration with Luz y Fuerza del Centro, the electric utility serving the metropolitan Mexico City area. The PV array constitutes the roof of a health food store called “The Green Corner.” An electronic display has been installed at a visible site in the store, to show customers in real time how the PV system performs.
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Market Development

The Mexican PV market during 2005 was a little over 0,5 MWp, which reflects a market contraction of almost 50 % in comparison with the previous year. Market segmentation was as follows. Rural electrification 307 kWp, which includes 242 water pumping systems with a total capacity of 200 kWp; 30 kWp for the grid connected PV system mentioned above; and 175 kWp in professional applications (telecommunications, off shore oil platforms and cathodic protection) Thus, the cumulative PV capacity installed in Mexico by the end of 2005 was 18,65 MWp.
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Future Outlook