Clean Energy Cost-Savings: A Study of Mexico’s Federal Electricity Commission (CFE)

Clean Energy Cost-Savings: A Study of Mexico’s Federal Electricity Commission (CFE)

Figure 2. Variable Generation Cost vs GDMTH Rates (Bajío)

Variable costs for diesel-fired plants clearly are much higher and cause huge losses to CFE every time they have to be brought into operation. Such is the case of the Yucatán Peninsula, where natural gas supply is severely limited and thus fuel oil and diesel- fired plants set the marginal price. A similar situation affects costs in Baja California Sur, which is not connected to the national grid and only recently has begun to receive natural gas. In these two regions, CFE could enjoy significant savings by injecting clean electricity to the grid—whether from self- supply partnerships with permits granted before LIE went into effect, or from the new plants installed to supply clean energy for CFE, purchased through long-term

auctions. Figures 3 and 4 show the relative savings in Yucatán and Baja California Sur.

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