PEER Review on Energy Efficiency in Mexico
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PEER Review on Energy Efficiency in Mexico APEC Energy Working Group October 2017 CONTENTS PREFACE ..................................................................................................................................................................... 5 EXECUTIVE SUMMARY ............................................................................................................................................. 6 RECOMMENDATIONS .............................................................................................................................................. 9 PART I: BACKGROUND INFORMATION ..................................................................................................... 13 1. INTRODUCTION ............................................................................................................................................................................ 14 1.1 Mexico’s energy sector in the international environment ................................................................................................................... 15 1.2 Accession process to the International Energy Agency ....................................................................................................................... 16 1.3 Sixth and seventh Clean Energy Ministerial (CEM6 and CEM7) ....................................................................................................... 16 2. INSTITUTIONAL FRAMEWORK .................................................................................................................................................... 18 3. ELECTRICITY SECTOR OVERVIEW AND FORECAST 2016-2030 ............................................................................................... 20 3.1 Regulatory and Policy Framework for the Electricity Sector .............................................................................................................. 20 3.2 Structure of the Electricity Sector .................................................................................................................................................................. 20 3.3 New Markets .......................................................................................................................................................................................................... 21 3.4 Power users ............................................................................................................................................................................................................ 22 3.5 Electricity price and rates .................................................................................................................................................................................. 22 3.6 Subsidies on electricity rates ........................................................................................................................................................................... 23 3.7 Mexico’s consumption of electricity ............................................................................................................................................................. 23 4. LEGAL FRAMEWORK .................................................................................................................................................................... 26 4.1 Energy Transition Law (LTE) .............................................................................................................................................................................. 26 4.2 Components of the Transition Strategy to Promote the Use of Cleaner Technologies and Fuels ..................................... 28 5. FINANCING MECHANISMS ......................................................................................................................................................... 29 6. EFFICIENCY POTENTIALS AT THE SECTORAL LEVEL .................................................................................................................. 31 6.1 Energy consumption by end use sector and trends .............................................................................................................................. 31 6.2 Consumption by sector ..................................................................................................................................................................................... 31 7. SCENARIOS: FORECAST, MEDIUM AND LONG-TERM GOALS ................................................................................................ 35 7.1 Legal and programmatic references ............................................................................................................................................................ 35 7.2 Sectorial Scenarios .............................................................................................................................................................................................. 35 7.3 Business as usual (BAU) scenario .................................................................................................................................................................. 35 7.4 Transition scenario ............................................................................................................................................................................................... 36 7.5 Electricity consumption with efficiency measures.................................................................................................................................. 37 2 7.6 Energy efficiency targets ................................................................................................................................................................................... 39 8. ENERGY EFFICIENCY INDICATORS AND DATA .......................................................................................................................... 40 PART II: PREE REVIEW TEAM REPORT ......................................................................................................... 41 1. OVERALL/INSTITUTIONAL CONTEXT ......................................................................................................................................... 42 1.1 Achievements ........................................................................................................................................................................................................ 42 1.2 Challenges ............................................................................................................................................................................................................... 43 1.3 Recommendations ............................................................................................................................................................................................... 44 2. ENERGY EFFICIENCY GOALS, TARGETS AND STRATEGY .......................................................................................................... 46 2.1 Achievements ........................................................................................................................................................................................................ 46 2.2 Challenges ............................................................................................................................................................................................................... 47 2.3 Recommendations ............................................................................................................................................................................................... 47 3. ENERGY DATA COLLECTION AND MONITORING ..................................................................................................................... 49 3.1 Achievements ........................................................................................................................................................................................................ 49 3.2 Challenges ............................................................................................................................................................................................................... 51 3.3 Recommendations ............................................................................................................................................................................................... 52 4. POLICY MEASURES-GOVERNMENT AND BUILDINGS ............................................................................................................. 54 4.1 Achievements ........................................................................................................................................................................................................ 54 4.2 Challenges ............................................................................................................................................................................................................... 55 4.3 Recommendations ............................................................................................................................................................................................... 55 5. POLICY MEASURES-INDUSTRIAL SECTOR ................................................................................................................................