Transcript Overview of the New Mexican Energy Model by Rafael Alexandri of the Energy Secretariat of Mexico

OVERVIEW OF THE NEW
MEXICAN ENERGY MODEL
1
CONSTITUTIONAL ENERGY REFORM
•
On 2013 Mexico reformed its Constitution in the energy sector
(articles 25, 27 and 28) for the first time in the last six decades.
•
The exploration and extraction of hydrocarbons, the planning of the
electric sector and the public service of distribution and transmission
of electricity, are considered as strategic areas.
•
Such activities can be made through State Productive Enterprises, or
contracts awarded to private entities (except for the planning).
•
The oil and hydrocarbons that lay in the subsoil are property of the
Nation, and they will be exploited with a purpose to gain additional
revenue to contribute to the Nation’s long-term development.
2
OBJECTIVES OF ENERGY POLICIES
Hydrocarbons
 Attract new capital and state of
the art technology.
 Access deep-water and nonconventional reservoirs.
 Increase natural gas and oil
supply.
Sustainability and Energy
Transition
 Diversify generation.
 Develop renewable energies.
 Reduce environmental
impact.
Electricity
 Reduce electric rates to boost overall
economic competitiveness.
 Assure reliable service and guarantee
universal access.
 Increase
system
reduce losses.
efficiency
Cross-cutting
 Promote investment
 Modernize infrastructure
 Guarantee transparency
and
THE NEW HYDROCARBONS MODEL
UPSTREAM
Hydrocarbons
Exploration
and
Extraction
Contracts
MIDSTREAM
Transportation
And
Storage
DOWNSTREAM
Industrial
Transformation,
Distribution and
Retail
Permits
With a stronger institutional and regulatory framework, the Reform
presents good opportunities for investment throughout the value chain.
THE NEW POWER SECTOR MODEL
TRANSMISSION &
DISTRIBUTION
GENERATION
COMMERCIALIZATION
CONSUMPTION
Hydrocarbons
Exploration
and
Extraction
Hydrocarbons
Exploration
and
Hydrocarbons
Exploration
and
Extraction
Hydrocarbons
Exploration
and
Extraction
Competition
PPPs
Wholesale market
Qualified users
 Private investment is allowed in power generation and commercialization for
qualified users.
 Private investment is welcome in the transmission and distribution sectors,
contracted by CFE.
 A decentralized public entity, The National Center for Energy Control
(CENACE), will control dispatch and manage the wholesale market.