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Sunshine is the best… investment?

15 January 2014

I have some right-wing friends who seem convinced that clean energy is a “socialist plot” of some sort.  With “energy reforms” meaning an end to most subsidies here, though, capitalism — in the form of “green energy” — means a better deal for consumers, and a growth market for investors.

Via Green Tech Media:

Isla Contoy, Quintana Roo

Isla Contoy, Quintana Roo

Mexico possesses the framework for a growing solar market, both distributed and utility scale. As reported by GTM Research, net metering was enacted in Mexico in 2007 and is administered the Comisión Federal de Electricidad (CFE), Mexico’s state-owned electric utility. CFE has owned and operated most power plants in the country, but IPPs have been gaining a foothold in Mexico, especially with renewables. CFE signed a PPA with a 46.8-megawatt project being developed by Sonora Energy Group.

[…] there is “a line to cross” with retail electricity pricing in Mexico; typically, up to 150 kilowatt-hours will cost 6 cents to 9 cents per kilowatt-hour. In most regions, once you consume over 150 kilowatt-hours, the DAC rate (“De Alto Consumo,” or high consumption rate) is triggered and bumps up the price to as much as 22 cents per kilowatt-hour.

  […] residential solar installers have focused on high-income clients first, in areas with high insolation and consumers who are likely to be paying the DAC rate. Household customers have net metering, and despite a small “wheeling” charge, the residential market has done well quarter-to-quarter since 2009.

[…] You don’t need incentives for solar,” said James, suggesting that any market can grow as long as there is a transparent regulatory process — along with high tariffs and high DNI.

[…]

The Mexican solar market’s demand will quadruple from 60 megawatts in 2013 to 240 megawatts in 2014, driven by projects approved under the Small Power Producers Program, strong residential demand, and self-supply projects for commercial, industrial, and agricultural customers, according to GTM Research.

http://www.greentechmedia.com/articles/read/Mexico-as-Bellwether-for-an-Unsubsidized-Solar-Future

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3 Comments leave one →
  1. 15 January 2014 9:26 pm

    The electricity price structure is the same here in Vermont. We get the first 200 kw for 9 cents per, and it’s 22 cents per kw above that. The cheap stuff comes from the hydro power fro Niagra Falls. The balance is mostly produced by our local electric co-op, which is mostly from landfill produced methane gas. No nuclear here at the Washington Electric Co-op. The main issue here with solar is the need for backup sources for times of dark and cloud. A backup source needs to be on standby, and this can be expensive.

  2. norm permalink
    16 January 2014 7:03 am

    My right wing friends tend to be more willing to drink the koolaid the oil firms brew, renewable energy is not in their interest, and so it goes. The chinamen have invested in solar panel manufacture to the point where they are selling below cost to keep their workers employed. Not a bad thing for the world by my way of thinking, it will drive the American’s to invent a better, cheaper panel. I’m waiting on a panel that doubles as a roof covering, before I buy-I have about ten years left on my current roof and my barn will need one soon so I hope they get on the ball..

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