Mexicos New Electric Market From Birth to Infancy and Beyond Bob - - PowerPoint PPT Presentation

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Mexicos New Electric Market From Birth to Infancy and Beyond Bob - - PowerPoint PPT Presentation

Mexicos New Electric Market From Birth to Infancy and Beyond Bob Anderson Tenaska Energia de Mexico September 20, 2017 1 Demographic Comparison: Mexico : Population 127 Million GDP is $2.3 Trillion Electricity Use 240


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Mexico’s New Electric Market

From Birth to Infancy and Beyond

Bob Anderson Tenaska Energia de Mexico September 20, 2017

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Demographic Comparison:

Mexico City at Night

Mexico:

  • Population 127 Million
  • GDP is $2.3 Trillion
  • Electricity Use 240 TWHs

Texas:

  • Population 28 Million
  • GDP is $1.6 Trillion
  • Electricity Use 370 TWHs

United States:

  • Population 323 Million
  • GDP is $18.6 Trillion
  • Electricity Use 3,900 TWHs
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Courageous Politics, Law, & Policy

▶ Constitutional Amendment 2013 ▶ Electric Industry Law (LIE) August 2014 ▶ CENACE Creation Decree August 2014 ▶ Electric Power Market Bases September 2015 ▶ CENACE Day Ahead Market January 2016 ▶ CRE/NERC/CENACE Steering Group May 2017

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National Interconnected System (SIN) Consumption Distribution (September 6, 2017)

10.3% 10.4% 10.4% 21.4% 19.4% 14.9% 4.5%

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Electric Interties Between the United States & Mexico

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Ancillary Services Regions in Mexico

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CFE Tic Tac Toe CFE Corporate

GENERATION CFE Energia CFE International Basic Service Retailer Distribution Transmission Legacy Plants

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CFE Generation is Now 6 Independent Gencos

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CENACE Centralized Spot Market

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Monterrey August Hourly Day-Ahead LMP Prices

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Monterrey August Hourly Day-Ahead LMP Price Distribution

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Mexican Wholesale Market Participants

CFE Basic Service Supply CFE Gencos Generators Non‐Supplier Marketers Qualified Market Participant Users

Qualified Suppliers

6(6) 5(1) 20(14) 20(5) 1(0)

CENACE & Forward Electric Market

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Mexican Wholesale Electric Transactional Mechanics

(Current Status)

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Centralized Long Term & Mid Term Auction Clearinghouse

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Final Thoughts:

  • It is a Spanish speaking market. So what?
  • The foreign exchange rate between Mexico and the US

withstood the election of President Trump.

  • CENACE has the potential to outgrow the Cal ISO.
  • Mexico’s transformation is making a true North

American Electric Market possible.

  • The electric interchange between the Unites States and

Mexico is currently anemic but what if it wasn’t?

  • From Dallas, Texas it takes exactly as long to fly to

Mexico City as it does to Minneapolis, Minnesota.

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Thank You

Bob Anderson Tenaska Energia Office (817) 462-8072 banderson@tnsk.com