VZCZCXRO5868
RR RUEHCD RUEHGD RUEHHO RUEHMC RUEHNG RUEHNL RUEHRD RUEHRS RUEHTM
DE RUEHME #2666 1441802
ZNR UUUUU ZZH
R 241802Z MAY 07
FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC 7139
INFO RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RHEBAAA/DEPT OF ENERGY WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS MEXICO 002666 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA/MEX, WHA/EPSC, EB/IFD/OMA 
STATE FOR EB/ESC MCMANUS AND IZZO 
USDOC FOR 4320/ITA/MAC/WH/ONAFTA/GWORD 
USDOC FOR ITS/TD/ENERGY DIVISION 
TREASURY FOR IA (ALICE FAIBISHENKO) 
DOE FOR INTL AFFAIRS KDEUTSCH, ALOCKWOOD, AND GWARD 
DOE FOR A/S HARBERT 
 
E.O. 12958: N/A 
TAGS: ENRG EPET ECON MX
SUBJECT: RENEWABLE ENERGY IN MEXICO 
 
REF: A. MEXICO 589 
     ¶B. MEXICO 1255 
 
Introduction and Summary 
------------------------ 
 
¶1.  (SBU)  Embassy Mexico, working through USAID under the 
auspices of the ongoing Mexican Energy Network (ref A), 
joined with the Autonomous University of Mexico (UNAM) and 
the Autonomous Mexican Institute of Technology (ITAM) on May 
15, 2007  to present a conference on identifying and 
overcoming obstacles to renewable energy in Mexico. Fifty 
representatives from government, industry and academia 
participated in the discussion, which was also received 
substantial press coverage.  End Introduction and Summary 
 
¶2.  (SBU) The conference focused primarily on policy and 
regulatory barriers to greater investment in solar, wind and 
biomass energy. There were separate panels on large and small 
scale energy, as well as a final panel with representatives 
from governmental energy agencies who addressed public policy 
challenges. 
 
¶3.  (SBU) Professor Jorge Islas, a senior researcher at the 
Center on Energy Research at the Autonomous University of 
Mexico (UNAM), noted that unlike the hydrocarbon and 
electricity sectors, there are no constitutional restrictions 
covering the development of renewable energy; however, Mexico 
still lacks a legal framework to create the market conditions 
necessary to promote development of renewable technologies. 
 
¶4.  (SBU) Islas called for the GOM to provide guaranteed 
access to the electrical grid; long-term interconnection 
contracts; and obligatory purchase contracts from the Mexican 
electricity monopoly, the Federal Electricity Commission 
(CFE).  More controversially, Islas made a case for 
guaranteed purchase rates and additional fiscal incentives, 
arguing that countries with successful take-up of alternative 
energies have followed that approach. 
 
¶5.  (SBU) Consultant and former head of the Mexican National 
Commission for Energy Savings (CONAE) Odon de Buen blamed the 
CFE's monopoly position for lagging adoption of renewables 
technology.  He also pointed to Mexican poverty and low 
levels of social awareness about renewables, as well as the 
weakness of Mexico's Energy Regulatory Commission (CRE).  De 
Buen also blamed the government for not making the benefits 
of renewable energy more understandable and visible to 
ordinary Mexicans. 
 
¶6.  (SBU) In a follow-on panel on local implementation of 
renewable technologies, Rodolfo Martinez, President of the 
National Solar Energy Association (ANES) claimed a potential 
Mexican market of 5.1 million units for stand-alone "off 
grid" photovoltaic cells.  Martinez repeated the call for 
specific financing mechanisms and additional Mexican funds 
for R&D. 
 
¶7.  (SBU) Finally discussing the policy challenges, Director 
General of Energy Technology and Efficiency, at  the Mexican 
Energy Secretariat, Diego Arjona closed the event noting that 
while Mexico is improving, much more needs to be done and 
that further development of renewables and the promotion of 
energy efficiency hinges on overall improvement in the sector. 
 
¶8.  (SBU) The event received considerable media coverage in 
the most important national newspapers, including Reforma, El 
Universal, La Jornada, and through Notimex (the state 
national news agency), in newspapers across the country 
including El Siglo de Torreon, El Diario de Yucatan and El 
Porvenir de Monterrey. There was also coverage on radio 
through Monitor and on TV in a segment of Canal Once Noticias. 
 
 
Visit Mexico City's Classified Web Site at 
http://www.state.sgov.gov/p/wha/mexicocity and the North American 
Partnership Blog at http://www.intelink.gov/communities/state/nap / 
BASSETT