Cogeneration: a regulatory framework toward growth

This paper reviews the prospects for renewable energy as a source of electricity in Mexico. It shows that, in spite of the abundance of renewable energy resources, applications to green power generation are minimal. Opportunities to use renewables as part of the Mexican energy mix are many, and could bring a number of benefits, social, economic, political, environmental and otherwise. Barriers to do so are also many and are analysed here. A pragmatic approach based on six strategic elements is proposed for barrier removal, namely: enabling policy and regulatory frameworks; adequate and effective institutional and technical settings; ad hoc financing mechanisms; concerted action plans among government sectors; mechanisms to facilitate participation of private and social sectors; and effective coordination among national and international stakeholders. It is concluded that Mexico is at cross-roads with respect to renewable energy, and that a swift, strong and sustained effort has to be made to alter the present situation. Otherwise, the opportunity ahead will be lost and Mexico will remain a net importer of the new energy technology.