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96 © Vargas-hernández and Espinosa 2016 | Solar Panel and Renewable Energy
C. Concentration Index Segment
In the table below, the participation of compa-
nies in the renewable energies sector is shown.
Also there are calculations of the Herfindal-
Hirshman Concentration Index (HHI). For 2009
were also calculated by size of enterprise, the
data give an HHI of 0.60 that is a monopolistic
competition because 27 of the 65 companies
control the market, hogging 77.07% of the mar-
ket, leaving only one 22.93% for all other compa-
nies.
Nonetheless, economic theory says that the mar-
ket tends to move from a monopoly to oligopoly
due to the size of companies and the influence
they have in the market competition (Table 2).
This market is relatively new and is a tempting
niche for the large firms because consumers are
almost all the same. Houses, apartment build-
ings, hospitals, businesses, hotels, sport clubs,
government projects, solar parks and even the
producers themselves would benefit because
costs would be lower. It is known that the solar
energy market in Mexico accounts for millions of
dollars, of which 30 belong to photovoltaic.
Because it is an emerging market that is rela-
tively new, it turns out to be extremely profitable cial Gazette Diario Oficial de la Federación, which
for all companies, making the development and
growth of this focus solely on their production
costs and market strategy.
7. Costs
Photovoltaic systems in network connections in
Mexico differ in cost depending on its capacity. In C. Interconnection Agreement for Renewable
late 2011, SENER and GTZ conducted a survey of
stakeholders and actors in the country to deter-
mine these costs. For the residential sector, the
average investment for PV systems with a capac-
ity between 0.24kWp to 1.65kWp is U.S. $ 4.851
/ kWp with leveled costs of U.S. ¢ 17.8/kWh.
Meanwhile, costs for systems with capacities be-
tween 2kWp to 10kWp are reduced to U.S. $
3,000 / kWp - 4,200 / kWp and leveled genera-
tion costs range from U.S. ¢ 10.9/kWh (Mx $ 1.3)
and U.S. ¢ 15.4/kWh (Mx $ 1.8). By early 2014,
these costs were reduced to 1100 dlls.
Science Target Inc. www.sciencetarget.com
It is estimated that the average lifespan of photo-
voltaic panels is 25 years useful to 100% and up
to 35 years total lifespan. It is estimated that the
initial investment is recovered in the medium
term between three and six years after purchase.
8. Regulatory Frameworks for Renewable
Energy
Currently, the following legal and regulatory in-
struments allow the use of solar PV grid connec-
tions.
A. General Law on Climate Change
On June 6, 2012, this law was published in the Of-
ficial Gazette Diario Oficial de la Federación,
which has among its purpose to ensure the right
to a healthy environment and to establish the oc-
currence of powers of the three branches of gov-
ernment in the development and implementa-
tion of public policy on two guiding themes:
change adaptation and mitigation of emissions
and greenhouse compounds.
B. Law on the Use of Renewable Energies and
Financing of Energy Transition (LAERFTE)
and its Regulations
In late 2008, this law was published in the Offi-
has the purpose to regulate the use of renewable
energy for electricity generation for purposes
other than the provision of public service. Its reg-
ulation was published in the Official Gazette on
September 2, 2009, including more specific areas
for compensation of renewable energy projects.
Energy and Power Cogeneration System in
Small and Medium Scale.
On April 8, 2010, the Energy Regulatory Commis-
sion (CRE) published these model contracts in
the Official Gazette and intended to establish the
rights and obligations of a user that connects a
source of renewable energy to SEN. These inter-
connection agreements are based on the princi-
ple of "net metering".