Liberalization reform in Mexico and its impact on regional energy trade

Transcription

1 Liberalization reform in Mexico and its impact on regional energy trade May 26, 2015 Susana Ivana Cazorla Espinosa World Forum on Energy Regulation VII Istanbul, Turkey

2 Main features of the energy reform

3 Oil products (except LPG): State activity and private participation (previous) Upstream Storage Terminals Imports Oil well Refinery Distribution Plant Midstream Sales to final users Final Users Pipeline Other means of transportation State activity Private participation Downstream

4 Oil products (except LPG): State activity and private participation (now) Upstream Storage Terminals Imports Oil well Refinery Distribution Plant Midstream Sales to final users Final Users Pipeline Other means of transportation State activity Private participation Downstream Openness: Regulated liberalization

5 Natural Gas: State activity and private participation (previous) Upstream Gas well Oil well Gas Processing Complex Refinery Storage Imports Distribution Net Midstream Sales to final users Final Users Pipeline Other means of transportation State activity Private participation Downstream

6 Natural Gas: State activity and private participation (now) Upstream Gas well Oil well Gas Processing Complex Refinery Storage Imports Distribution Net Midstream Sales to final users Final Users Pipeline Other means of transportation State activity Private participation Downstream Openness: Regulated liberalization

7 LPG: State activity and private participation (previous) Upstream Storage Imports Gas well Oil well Gas Processing Complex Refinery Distribution Net Midstream Sales to final users Distribution Plant Pipeline Other means of transportation State activity Private participation Final Users Downstream

8 LPG: State activity and private participation (now) Upstream Storage Imports Gas well Oil well Gas Processing Complex Refinery Distribution Net Midstream Sales to final users Distribution Plant Pipeline Other means of transportation State activity Private participation Openness: Regulated liberalization Final Users Downstream

9 Petrochemical products (Now) Upstream Gas well Gas Processing Complex Storage Imports Oil well Refinery Final Users Midstream Downstream Pipeline Other means of transportation Private participation

10 Electricity market structure: (previous) Generation System operation Transmission Distribution Marketing Public Utility Public Utility Public Utility Public Utility Public Utility IPP Small producer 3rd parties EPC contracts 3rd parties Self-supply CHP Exports Imports State activity Private participation

11 Electricity market structure: (new) Generation System operation Transmission Distribution Marketing Public Utility previous + new ones ISO Public Utility transmission 3rd parties through contract Public Utility through distribution zones 3rd parties through contracts Public Utility (qualified users) 3rd parties (qualified users) State activity Private participation Regulated suppliers (regulated users)

12 Wholesale electricity market operation Generator Wholesale electricity market Qualified users Power plant(s) FTR holders Marketer Energy Power Supplier of qualified services Demand response REC holders Ancillary services Supplier of last resort User of last resort Supply Supplier of regulated services Distributed generation (<0.5 MW) FTR REC Others Supplier of regulated services Demand Regulated users Demand response Transmission and distribution Based on the presentation Reforma Eléctrica, Commissioner N. Navarrete, Morelia, September 2014.

13 Liberalization and Regional Integration

14 Mesoamerican Integration and Development Project Mesoamerican cooperation among members of SIEPAC, Belize, Colombia and Mexico is committed to explore options and mechanisms to make power integration completed. México Guatemal a El Salvador Costa Rica Belice Honduras Panamá Nicaragua Dominican Republic Colombia

15 Guatemala - Mexico Electricity Interconnection Project Tapachula Los Brillantes Symbology: SIEPAC Federal Electricity Commission Project National Electrification Institute Project - Project s objectives: to interconnect Guatemala s and Mexico s electric power s to interconnect the Mexican with the SIEPAC - The interconnection project has become the first link in a chain of projects that aim to develop the Mexican and Central America electrical industry in the near future Construction of 103 km 400kV Electric Power Transmission Line Expansion of 2 substantions-tapachula and Los Brillantes, Retalhuleu Initial capacity: 200MW Mexico - Guatemala 700MW Guatemala - Mexico

16 National Gas Pipeline System and Expansion Plan Ehrenberg Los Algodones Tucson San Luis Río Colorado Sásabe Pto. Libertad San Isidro Samalayuca Ojinaga Waha LNG Regasification Terminals Operating Completed (since 2014) Currently Under Construction Awarded by bidding process Bidding process Projects Guaymas El Encino Colombia Lasalle Webb Agua Dulce Laredo Sur de Texas Pipelines El Oro Topolobampo Durango La Laguna Escobedo Frontera Los Ramones 6 concluded 7 under construction 5 awarded 4 bidding process 11 projects Mazatlán Independent System Operator Aguascalientes Guadalajara Lázaro Cárdenas Acapulco V. Reyes Apaseo el Alto Huexca Tula Naranjos Tuxpan Cempoala Jáltipan Salina Cruz Tapachula Mérida Cancún In 2018, 6,413 Km will be constructed, representing an investment of about 13 billion dollars*. *Programa Nacional de Infraestructura

17 Liberalization Process Competition in the whole chain Energy policy to reduce monopoly power of incumbents Open access to infrastrucutre Regulatory framework Liquid and flexible markets of energy Sound Energy Markets Integration and trading energy

18