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SUNNY MEXICO:

TECHNOLOGY AND POTENTIALS

By Onyedika

CONTENT
Introduction
Sunny Mexico
Types of Solar Technology
Mexico Potentials and Challenge
Regulatory Bodies
Mexican Govt Collaborations
LCA of PV Systems
Environment and Risks
Market Analysis
Conclusion

SOLAR TECHNOLOGY
Brief History of Solar Power
The first photovoltaic cell was built by Charles Fritts, who built a
30-cm cell from selenium and gold in 1883 . Modern silicon
photovoltaic technology was discovered in 1954 by researchers in
Bell Labs.
Definition
Solar energy is a renewable resource that is inexhaustible and is locally
available.
Technologies are broadly classified into :
Photovoltaic System
Solar Thermal

Solar Thermal Energy (STE)

Is a technology for harnessing solar energy for thermal energy. Solar


thermal collectors are classified into:

Low temperature collectors

Medium-temperature collectors

Nonprofitpage.com 2010
Nonprofitpage.com 2010

Nonprofitpage.com 2010

High temperature collectors


(Concentrated Solar Power)

PV SYSTEM

Cogeneration.net, 2010

MEXICO
Geographic coordinates
surface (land) area
Population
Population growth rate
GDP
GDP - per capita
Electricity - consumption

23 00 N, 102 00 W
1958201 sq.km (2010 est.)
110 million (2010 est.)
1.118% (2010 est.)
Purchasing power parity -$1.482
trillion (2009 est.)
Purchasing power parity - $13,500
(2009 est.)
181.5 billion kWh (2009 est.)
Mapzones.com, 2010

EIA Statistics, 2010

OPPORTUNITY IN MEXICO

Average Global Horizontal Irradiation [GHI] is approximately 5


kWh/m2/day, the energy equivalent of 50 times Mexico's annual
national electricity generation
70% of the territory has GHI values greater than 4.5kWh/m2
Installed
Capacity
MW (2007)

Installed
Annual
Annual
Capacity MW Growth MW Growth
(2008)
%

Solar Thermal
Electric

0%

Solar Hot Water

108

116

8.0

7%

PV

18.4

19.4

1.0

5%

Total

126.4

135.4

9.0

13%
Seekingalpha.com (2010)

REGULATORY BODIES

The "Renewable Energy


Development and
Financing for Energy
Transition Law" and
Law on Sustainable
Energy Use (LAERFTE
and LASE respectively)
became effective in
November
2008(Tech4cdm, 2010).

COLLABORATIONS

The "U.S.-Mexico Bilateral Framework on Clean Energy and


Climate Change" agreed to by Presidents Calderon and Obama in
April 2009 (Seekingalpha.com, 2010)

A German company Q-Cells, one of the worlds largest in solar


energy, will invest over 500 million dollars in the city of Mexicali, to
supply the U.S., Mexico and Latin America.

LCA OF SOLAR PV SYSTEM

Kannan et al, 2005

ENERGY YIELD
City

State

KWH/KW

Energy Pay
Back Time
(years)

Energy return
Factor

Guaymas

Sonora

1,818

1.4

20.6

Ciudad Obregon

Sonora

1,818

1.4

20.6

Hermosillo

Sonora

1,818

1.4

20.6

Chihuahua

Chihuahua

1,787

1.4

20.2

Durango

Durango

1,727

1.5

19.5

La Paz

Baja California

1,727

1.5

19.5

Mexico-average

1,515

1.7

17.0

Sevilla, Spain

1,460

1.7

16.3

Madrid, Spain

1,394

1.8

15.6

Mexico- 70% of country

1,363

1.9

15.2

1,333

1.9

14.8

Barcelona, Spain

1,193

2.1

13.2

Munich, Germany

960

2.6

10.4

Berlin, Germany

829

3.0

9.0

Cologne, Germany

809

3.1

8.6

Monterrey

Nuevo Leon

Seekingalpha.com (2010)

EMISSIONS
Coal

PV

CO2 Emissions
(Tons/GWh)

1057.09

5.890

Nox Emissions
(Tons/GWh)

1.55

0.008

Sox Emissions
(Tons/GWh)

2.97

0.020

Particulate Emissions
(Tons/GWh)

1.62

0.020

Coal Waste (Tons/GWh)

142.69

N/A

Land Utilization
(Acres/GWh)

0.09

0.080

Steel Utilization
(Tons/GWh)

0.22

1.840
Seekingalpha.com (2010)

CO2 EMISSIONS
Technology

Metric Tons/GWh

Conventional Coal Plant

1057.1

Atmospheric Fluidized Bed Combustion Coal

962.9

Plant Integrated Gasification Combined Cycle


Electric Plant
Oil-Fired Plant

750.9

Gas-Fired Plant

484.0

Ocean Thermal Energy Conversion

304.0

Geothermal Steam

56.8

Small Hydropower

10.0

Wind Energy

7.4

Photovoltaic

5.9

Solar Thermal

3.6

Large Hydropower (for new dams)

3.1

Wood (sustainable harvest)

-159.9

762.2

Seekingalpha.com (2010)

LAND REQUIREMENTS
Technology

m2/GWh

Gas Turbine

25-80

Lignite Coal

800

Bituminous Coal

80-400

Integrated Gasification Combined


Cycle

300

Nuclear

80-100

PV Central Station

300-700

Wind

40-1,700

Large Hydro

1,000-30,000

Small Hydro

20-2,000

Solar Thermal Trough

100-400

Dedicated Biomass Plantation

15,000-30,000
Seekingalpha.com (2010)

RISK PROFILE

Depletion of silver resources

Weather-resistant encapsulation of modules is a bottleneck for


recycling

A solar PV plant can generate as much as 90 tonnes of used PV solar


modules

MEXICO SOLAR ENERGY POTENTIAL


Application

Market Size
(Millions)

Most Promising States

Livestock Water Pumping

$297.0

Chiapas, Chihuahua, Coahuila, Jalisco,


Nuevo Leon, Tamaulipas

Portable Water

$134.9

Baja CaliforniaCampeche, Chiapas,


Chihuahua, Guerrero, Jalisco, Nuevo Leon,
Oaxaca, Queretaro, SanLuis Potosi, Sonora,
Tamaulipas and Veracruz

Rural Electrification

$511.0

Campeche, Chiapas, Chihuahua,Guerrero,


Jalisco, Nuevo Leon, Oaxaca, Queretaro,
SanLuis Potosi, Sonora and Tamaulipas

Small-Scale Irrigation

$93.6

Chiapas, Hidalgo, Mexico, Michoacan and


Puebla

Total

$1036.50
Robert, 1998

MEXICO CHALLENGE

Socio-cultural Issues: The technology is relatively unknown to the


target market.

Institutional Issues: Government sponsored rural electrification are


loop sided

Technical Issue: Inadequate technical manpower.

Infrastructural Issue: PV distributors are typically in larger cities.

Financial Issue: High initial capital cost of the technology.

COMPETITION

Dry cell batteries

Kerosene lamp

Fossil fuel

Wind energy

Hydropower

MARKETING PEES
Product

Promotion

Quality, low cost, low


maintenance, and long-lasting
lighting and entertainment product

Environmentally friendly"
product.
Radio jingles
Printed promotional materials

Price

Place

$600 to $800 per PV system should Regional distributors


be competitive
Setup manufacturing operations in
Mexico to reduce cost

S.W.O.T
Strengths

Weaknesses

Individual PV module
Improved user health
Safer
Product durability
Environmental acceptability

High initial capital cost


Poor reputation (sub-standard PV
systems)
Difficulties in marketing and
distributing to rural locations

Opportunities

Threats

Growing private sector market


Develop PV financing programs
Government rural electrification
programs
Market for battery/light
replacements

Electric grid extensions


Competing technologies (e.g.,
generators)

MERITS

Economic development

Alternative to fossil

Technological advancement

Export potential

Reduction in green house emissions

CONCLUSION
Although market penetration by solar energy technologies is slow, it
is continuous. With increased and consistent Government support
through incentives in Mexico, solar energy development will grow at
unprecedented rates.
It has the potential of being a source of foreign revenue to the
Mexican government.

REFERENCE

Seekingalpha.com (2010) Sunny Mexico: A Solar Energy Opportunity. [Online] Available from:
http://seekingalpha.com/article/213492-sunny-mexico-a-solar-energy-opportunity. Accessed on :7th
March 2011.
Tech4cdm (2010). Solar Thermal Energy in Mexico. [Online] Available from:
http://www.tech4cdm.com/uploads/documentos/documentos_Solar_Thermal_in_Mexico_159c5bf0.pdf.
Accessed on :7th March 2011.
R. Kannan, K.C. Leong, R. Osman, H.K. Ho, C.P. Tso (2005). Life cycle assessment study of solar PV
systems. [Online] Available from:
http://www.sciencedirect.com/science?_ob=MImg&_imagekey=B6V50-4GCWY71-2F&_cdi=5772&_user=585204&_pii=S0038092X05001544&_origin=gateway&_coverDate=05/31/2006
&_sk=999199994&view=c&wchp=dGLbVzWzSkzS&md5=b4bfb8be98cf2d5873f0b8a89f0184bb&ie=/sdarticle.pdf. Accessed on :7th March 2011.
Eia.doe.gov (2010). Energy Information Administration: Mexico. [Online] Available from:
http://www.eia.doe.gov/cabs/Mexico/Full.html. Accessed on :7th March 2011.
Mapzones.com (2010). Mexico: general Data. [Online] Available from:
http://www.mapzones.com/world/north_america/mexico/dataindex.php. Accessed on :7th March 2011.
Greentechmedia.com (2010). Sunny Mexico: An Energy Opportunity. [Online] Available from:
http://www.greentechmedia.com/articles/read/sunny-mexico-an-energy-opportunity/. Accessed on :7th
March 2011.
Congeneration .net (2010). Solar Electric Power Systems. [Online] Available from:
http://cogeneration.net/solar_electric_power_systems.htm. Accessed on :7th March 2011.