Mexico and the Northern Countries Investment Opportunities on Renewable Energy Technologies
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MEXICO AND THE NORTHERN COUNTRIES INVESTMENT OPPORTUNITIES ON RENEWABLE ENERGY TECHNOLOGIES by DANIEL GUERRA DHEMING Company: ProMéxico Fco. Javier Sánchez Alejo, School Advisor Gabriela Cárdenas Hernández, Company Tutor A thesis submitted in partial fulfillment of the requirements for the Degree of Master of Science in : Management and Engineering for Energy and Environment (ME3) ECOLE DES MINES DE NANTES (Nantes, France) KTH ROYAL INSTITUTE OF TECHNOLOGY (Stockholm, Sweden) Academic Year 2011 – 2013 Submitted June 2012 Mexico and the Northern Countries Investment Daniel Guerra Dheming Opportunities on Renewable Energy Technologies ProMéxico ABSTRACT ProMéxico is the Mexican Government institution in charge of strengthening Mexico’s participation in the international economy by supporting trade, direct investment in Mexico and the internationalization of Mexican Companies abroad. Funded by the Mexican Ministry of Economy with direct collaboration with the Mexican Foreign Embassy’s, there are 27 offices around the world. ProMéxico Stockholm oversees both the Nordic Countries and the Baltic Regions. ProMéxico consulting services are mainly focused in promoting benefits and incentives of investment in Mexico, aiding in the decision-making with industry information, business plans, establishing Business-to-Business (B2B) partners, creating joint ventures, assessing in the soft-landing for establishing the company and finally reviewing the satisfaction as a after-care for future re- investments. According to the 2013–2027 National Energy Strategy published by the Federal Government Ministry of Energy, renewable energies are going to play a major role to achieve their main objectives: Energetic sustainability, environmental and energetic efficiency and Energy Security. Additionally national private companies have adopted renewable energy sources for either economic benefits or social-environmental awareness. For these reasons, ProMéxico Stockholm has developed a strategy to take advantage of the lower manufacturing cost of Mexico, the technological development of Scandinavia and the Mexican demand for Renewable Energies to create investment opportunities. The basic strategy includes: • Review of the current energy sector and their roadmaps. • Identify possible renewable energy projects plans both for private and public sectors with the aid of different local and foreign government branches leaders, industry associations, representatives chambers of commerce and clients. • Establish B2B partners by promoting, attending or creating renewable energy seminars, conferences, trade fairs or direct contact. • Give a consultancy on technology and considerations to achieve project objectives. • Follow the development of the opportunity until its formalized. • Assess and inform the impediments found to create investment to policy makers for future reviews of incentives. The major challenge is to identify and coordinate all the different participants of the sector due to the lack of information of investment opportunities to foreign companies and the lack of communication between different Government Branches with the private sector 1 2013 Master in Management for École des Mines de Nantes Energy and Environment KTH Royal Institute of Technology Mexico and the Northern Countries Investment Daniel Guerra Dheming Opportunities on Renewable Energy Technologies ProMéxico INDEX NOTES Report Title Mexico and Scandinavia Investment Opportunities on Renewable Energy Technologies Curriculum Master in Management and Engineering of Energy and Environment (ME3) Placement title Intern Year 2013 Author Daniel Guerra Dheming Company ProMéxico Number of employees 4 Address Riddargatan 11B, 11451, Stockholm, Sweden Company tutor Gabriela Cardenas Hernandez Function/Position Deputy Trade Commissioner School tutor Fco. Javier Sanchez Alejo Keywords Investment Opportunities, Trade, Renewable Energies Summary ProMéxico Stockholm has developed a strategy to take advantage of the lower manufacturing cost of Mexico, the technological development of Scandinavia and the Mexican demand for Renewable Energies to create investment opportunities from Scandinavia to Mexico. Through seminars, fairs and events, companies are met and matchmaking is done with possible projects and interested Mexican Companies to attract foreign investment to Mexico. ProMéxico aids in the promotion, decision- making and soft-landing to achieve this. 2 2013 Master in Management for École des Mines de Nantes Energy and Environment KTH Royal Institute of Technology Mexico and the Northern Countries Investment Daniel Guerra Dheming Opportunities on Renewable Energy Technologies ProMéxico Table of Contents WHAT IS PROMÉXICO ....................................................................................................... 4 OBJECTIVES OF PROMÉXICO: ......................................................................................... 4 STRUCTURE OF PROMÉXICO: ......................................................................................... 5 CORPORATE STRUCTURE ......................................................................................................... 5 INVESTMENT PIPELINE AND CRM ......................................................................................... 6 INTERNSHIP ON RENEWABLE ENERGIES: .................................................................. 8 MEXICO .................................................................................................................................. 9 ADVANTAGES OF INVESTMENT IN MEXICO .................................................................... 10 INVESTMENT SUCCES STORIES ..................................................................................................... 11 ELECTRICITY MARKET IN MEXICO ..................................................................................... 12 RENEWABLE ENERGY ........................................................................................................................ 14 REGULATIONS ........................................................................................................................................ 15 ELECTRICITY SALES AND PRICES: ................................................................................................ 17 SCANDINAVIAN MARKET ............................................................................................. 18 SWEDEN ...................................................................................................................................... 18 SWEDISH ENERGY MARKET OVERVIEW: .................................................................................. 19 BIOGAS IN SWEDEN: ........................................................................................................................... 19 DENMARK ................................................................................................................................... 19 DANISH ENERGY MARKET OVERVIEW: ..................................................................................... 20 OPPORTUNITIES AND PROSPECTS FOR INVESTING ........................................... 20 CANDIDATES AND NEGOTIATIONS ........................................................................... 23 SWEDISH ENERGY EFFICIENCY: .......................................................................................... 23 MEXICAN STATE GOVERNMENT SUSTAINABILITY PROJECTS: ................................. 24 SYNTES, WASTE TO ENERGY ....................................................................................... 25 BIOGAS PROJECT ............................................................................................................. 25 COMPETITION ........................................................................................................................... 26 COMPETITIVE DIFFERENTIATION ..................................................................................... 26 ENVIROMENTAL BENEFITS ................................................................................................... 27 PRODUCTION AND FINANCIAL OVERVIEW ..................................................................... 27 PROMÉXICO PARTICIPATION .............................................................................................. 28 CHALLENGES ..................................................................................................................... 28 CONCLUSIONS ................................................................................................................... 28 REFERENCES ..................................................................................................................... 29 3 2013 Master in Management for École des Mines de Nantes Energy and Environment KTH Royal Institute of Technology Mexico and the Northern Countries Investment Daniel Guerra Dheming Opportunities on Renewable Energy Technologies ProMéxico WHAT IS PROMÉXICO ProMéxico is the Mexican Government Institution in charge of strengthening Mexico’s participation in the international economy by supporting the export activity of companies established in the country helping them to become international and coordinate actions to attract foreign direct investment to national territory. Established in 2007 by presidential decree as a public trust subdivision of the Ministry of Economy, ProMéxico offers some of its services free of charge to its client’s willing to invest in Mexico through its main offices in Mexico City,