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Mexico
>> Regional Overview >> Mexico Overview Activity Data Sheet
PROGRAM: Mexico
TITLE AND NUMBER: Carbon Dioxide Emissions and Pollution Reduced, 523-007
PLANNED FY 2001 OBLIGATION AND ACCOUNT: $1,421,000 (DA)
PROPOSED FY 2002 OBLIGATION AND ACCOUNT: $1,500,000 (DA)
STATUS: Continuing
INITIAL OBLIGATION: FY 1993 ESTIMATED COMPLETION DATE: FY 2003Summary: The demand for electrical power is rising at the dramatic rate of 6% to 7% per year in Mexico, due mostly to the growth of industry and manufacturing. This increasing demand on generating capacity will increase emissions of greenhouse gas (GHG) pollutants, particularly carbon dioxide (CO2), which are linked to health problems, environmental damage, and climate change. The Government of Mexico (GOM) and various Mexican private sector institutions are actively promoting energy efficient industrial technologies, clean (non-polluting) and efficient energy production, and renewable energy sources to reduce pressure on the national electrical grid and stem the growth of health and environmental problems. USAID funds technical assistance to a wide array of Mexican public and private institutions to demonstrate the technical and economic viability of such technologies and systems, build Mexican institutional capacity to carry out effective energy conservation and clean energy production programs, and promote renewable energy sources.
Key Results: In FY 2000, tests and demonstrations carried out with USAID-funded technical assistance prevented 108,000 metric tons of CO2 emissions. Since the beginning of the activity, USAID has funded technical assistance for the installation of over 400 renewable energy systems that will produce over 14 million kilowatt hours. Ninety percent of the new technologies adopted by enterprises and local governments have proven to be sustainable without further USAID support. USAID-funded technical assistance helped Mexico's national Shared Risk Trust Fund (FIRCO) and the GOM's Energy Secretariat (SENER) launch two large-scale renewable energy programs with World Bank and Inter-American Development Bank (IDB) funding. These programs will replicate technologies developed under the USAID activity in 6,200 new renewable energy systems. A successful USAID-funded pilot test of energy efficient, cleaner production, and renewable energy technologies in Mexico City's Tlalpan municipality has drawn requests for similar help from other local governments.
Performance and Prospects: In seven years, USAID-funded assistance has helped create a core of highly professional public and private institutions that did not exist before. Demand for energy efficient, renewable energy, and cleaner energy production technologies and systems developed with USAID assistance has grown from zero. The Fox administration is serious about promoting energy efficient and renewable energy as well as cleaner production, as evidenced by requests for assistance from Mexico's largest state-owned energy agencies. The National Petroleum Company (PEMEX) asked USAID to design and pilot test a course in energy efficient technologies for senior technical managers. PEMEX leadership is enthusiastically committed to carrying out an extensive train-the-trainers program to introduce energy efficient and non-polluting systems in PEMEX facilities nationwide. Both the national Federal Electric Commission (CFE) and PEMEX are retrofitting electric generating facilities and refineries with more efficient, cleaner energy production equipment, which USAID helped to test. Adoption of improved systems and technologies by both organizations would reduce CO2 levels significantly. In addition, because the technologies, systems, and equipment tested with USAID funding come from the United States, large-scale adoption may help increase demand for U.S. exports.
USAID is working to better integrate its energy and climate change activities in order to achieve greater impact in both areas. For example, USAID is funding an effort to help Mexican institutions improve their ability to estimate the amount of GHG emissions reduced as a result of energy efficient and renewable energy innovations and technology.
One of the most important challenges to achieving programmatic goals is identifying ways to overcome constraints to large-scale adoption of energy conservation, clean production, and renewable energy technologies. Through FY 2003, USAID funding will be directed to four priority goals: 1) developing market mechanisms for financing and technical support of large-scale adoption by the public and private sectors; 2) helping Mexican partner institutions develop strategic plans and fill managerial capacity needs to maximize their effectiveness; 3) influencing high-level decision making and policies using quality data and analysis; and 4) developing synergies with other sectors to further leverage USAID and other donor funds toward broad-scale adoption.
FY 2001 funding is allocated as: approximately $900,000 for resource management, which includes energy efficiency, pollution prevention, and environmental management systems; $500,000 for renewable energy activities; and $100,000 for evaluations of each of these programs. In FY 2002, roughly $800,000 will support resource management activities and approximately $310,000 will fund renewable energy activities. Remaining funds will go towards program management.
Possible Adjustments to Plans: USAID will phase out of all assistance to technology and systems testing and hand over management of these activities to Mexican partner institutions by the end of FY 2001. A full evaluation is planned for FY 2001 to ascertain progress and identify any additional opportunities in which USAID can play a catalytic role.
Other Donor Programs: The World Bank and FIRCO will install 1,200 renewable energy systems in 28 states, replicating technologies and systems tested by USAID. The World Bank and SENER are designing a $6.5 million renewable energy program that will replicate USAID-funded technologies and systems in rural areas, providing power for rural community health, education, electrification, and productive applications. It is hoped that access to electricity will improve quality of life and help reduce migration from northern border states. USAID will seek to leverage funds under the IDB's recent $800 million decentralization loan to the GOM for replication of municipal energy savings systems successfully tested in the Tlalpan municipality.
Principal Contractors, Grantees or Agencies: U.S. contractors include PA Consulting Group (formerly Hagler-Bailly), which provides technical assistance in energy efficiency, pollution prevention, and environmental management systems. The U.S. Department of Energy's Sandia National Laboratories receives USAID funding to provide renewable energy technical assistance. Mexican partner institutions include the National Energy Savings Commission, the Mexican Center for Cleaner Production, the Association of Professionals and Technicians for Energy Applications, FIRCO, the Engineering Institute of Mexican National Autonomous University, the Tlalpan Delegation, and local NGOs.
Mexico 523-007
Performance Measures:
Indicator FY97
(Actual)FY98
(Actual)FY99
(Actual)FY00
(Actual)FY00
(Plan)FY01
(Plan)FY02
(Plan)Indicator 1: Carbon dioxide (CO2) emissions prevented through selected energy efficiency measures and adoption of renewable energy technologies* NA 376.55 283.63 108 100 125.00 125.00 Indicator 2: Percent of enterprises or municipalities continuing to use RMS technologies and renewable energy systems without USAID financial support one year after installation NA 95 80 90 60 60 60 Indicator 3: Number of Mexican institutions with adequate capacity in RMS and renewable energy technologies* NA 0 2 2 2 3 3 Indicator 4: Percent of annual policy goals achieved - renewable energy (RE), pollution prevention (PP), energy efficiency (EE)* 0 (RE)
0 (PP)
0 (EE)80 (RE)
90 (PP)
80 (EE)80 (RE)
90 (PP)
80 (EE)80 (RE)
80 (PP)
80 (EE)80 (RE)
80 (PP)
80 (EE)80 (RE)
80 (PP)
80 (EE)80 (RE)
80 (PP)
80 (EE)Indicator Information:
Indicator Level (S)or(IR) Unit of Measure Source Indicator Description Indicator 1: SO Thousands of metric tons of CO2 emissions offset annually G/ENV/EET Energy IQC and PASA USAID/DOE contractors CO2 emission benefits are calculated from the number of kilowatt-hours avoided through USAID funded energy efficiency and renewable energy investments. CO2 emissions results are credited to the year following installation of energy saving equipment and renewable energy systems provided the equipment or systems are operating successfully. Indicator 2: IR Percent of successful installations (from the total number of clients participating in pilot projects) G/ENV/EET Energy IQC and PASA USAID/DOE contractors A firm or municipality is counted as successfully adopting RMS technologies if it implements at least 50% of the program audit recommendations and demonstrates operation/maintenance of these technologies up to one year after the audits. A renewable energy enterprise is counted if the equipment is operating one year after installation. This indicator is not cumulative. Indicator 3: IR Number of institutions G/ENV/EET Energy IQC and PASA USAID/DOE contractors, Secretary of Energy, CONAE, CFE, FIDE, CMPL, FIRCO and ATPAE This indicator measures the institutional capacity of primary USAID/Mexico partners to implement and sustain RMS and renewable energy programs as measured by an institutional index developed by our partners. The index monitors progress in 5 categories: leadership and management, programs, human resources, financial resources, and communications, and is developed for the specific role that the institution is to play in the sector: RMS (CONAE, FIDE, CMPL, and ATPAE) and renewables (CONAE, FIRCO). Institutions which obtain a mean score between 8-9 on all five categories will be counted as having adequate institutional capacity. This indicator is cumulative. Indicator 4: IR Percent G/ENV/EET Energy IQC and PASA USAID/DOE contractors, Secretary of Energy, CONAE, CFE, FIDE, CMPL, and FIRCO Selected Mexican partners will develop annual policy objectives and present these in an annual work plan. At the end of each fiscal year, their accomplishments are evaluated relative to the targets. U.S. Financing
(In thousands of dollars)
Obligations Expenditures Unliquidated Through September 30, 1999 17,360 DA 14,046 DA 3,314 DA 0 CSD 0 CSD 0 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA Fiscal Year 2000 2,125 DA 650 DA 0 CSD 0 CSD 0 ESF 0 ESF 0 SEED 0 SEED 0 FSA 0 FSA 0 DFA 0 DFA Through September 30, 2000 19,485 DA 14,696 DA 4,789 DA 0 CSD 0 CSD 0 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA Prior Year Unobligated Funds 0 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Planned Fiscal Year 2001 NOA 1,421 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Total Planned Fiscal Year 2001 1,421 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Future Obligations Est. Total Cost Proposed Fiscal Year 2002 NOA 1,500 DA 2,500 DA 24,906 DA 0 CSD 0 CSD 0 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA
Last Updated on: May 29, 2002 |