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96 © Vargas-hernández and Espinosa 2016 | Solar Panel and Renewable Energy

C. Concentration Index Segment                       It is estimated that the average lifespan of photo-
                                                     voltaic panels is 25 years useful to 100% and up
In the table below, the participation of compa-      to 35 years total lifespan. It is estimated that the
nies in the renewable energies sector is shown.      initial investment is recovered in the medium
Also there are calculations of the Herfindal-        term between three and six years after purchase.
Hirshman Concentration Index (HHI). For 2009
were also calculated by size of enterprise, the      8. Regulatory Frameworks for Renewable
data give an HHI of 0.60 that is a monopolistic      Energy
competition because 27 of the 65 companies
control the market, hogging 77.07% of the mar-       Currently, the following legal and regulatory in-
ket, leaving only one 22.93% for all other compa-    struments allow the use of solar PV grid connec-
nies.                                                tions.
                                                     A. General Law on Climate Change
Nonetheless, economic theory says that the mar-
ket tends to move from a monopoly to oligopoly       On June 6, 2012, this law was published in the Of-
due to the size of companies and the influence       ficial Gazette Diario Oficial de la Federación,
they have in the market competition (Table 2).       which has among its purpose to ensure the right
                                                     to a healthy environment and to establish the oc-
This market is relatively new and is a tempting      currence of powers of the three branches of gov-
niche for the large firms because consumers are      ernment in the development and implementa-
almost all the same. Houses, apartment build-        tion of public policy on two guiding themes:
ings, hospitals, businesses, hotels, sport clubs,    change adaptation and mitigation of emissions
government projects, solar parks and even the        and greenhouse compounds.
producers themselves would benefit because
costs would be lower. It is known that the solar     B. Law on the Use of Renewable Energies and
energy market in Mexico accounts for millions of     Financing of Energy Transition (LAERFTE)
dollars, of which 30 belong to photovoltaic.         and its Regulations

Because it is an emerging market that is rela-       In late 2008, this law was published in the Offi-
tively new, it turns out to be extremely profitable  cial Gazette Diario Oficial de la Federación, which
for all companies, making the development and        has the purpose to regulate the use of renewable
growth of this focus solely on their production      energy for electricity generation for purposes
costs and market strategy.                           other than the provision of public service. Its reg-
                                                     ulation was published in the Official Gazette on
7. Costs                                             September 2, 2009, including more specific areas
                                                     for compensation of renewable energy projects.
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       Energy and Power Cogeneration System in
stakeholders and actors in the country to deter-     Small and Medium Scale.
mine these costs. For the residential sector, the
average investment for PV systems with a capac-      On April 8, 2010, the Energy Regulatory Commis-
ity between 0.24kWp to 1.65kWp is U.S. $ 4.851       sion (CRE) published these model contracts in
/ kWp with leveled costs of U.S. ¢ 17.8/kWh.         the Official Gazette and intended to establish the
Meanwhile, costs for systems with capacities be-     rights and obligations of a user that connects a
tween 2kWp to 10kWp are reduced to U.S. $            source of renewable energy to SEN. These inter-
3,000 / kWp - 4,200 / kWp and leveled genera-        connection agreements are based on the princi-
tion costs range from U.S. ¢ 10.9/kWh (Mx $ 1.3)     ple of "net metering".
and U.S. ¢ 15.4/kWh (Mx $ 1.8). By early 2014,
these costs were reduced to 1100 dlls.

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