Flory Annette Dieck-Assad Eduardo Carbajal-Huerta

Abstract

The CFE (Federal Electricity Commission), the state-owned company supplier of electricity in Mexico has to face the greatest challenge in its history: increase the electric power required for economic development; this would mean having to add an additional electricity capacity of 57,122.3 MW (Mega Watts) for 2030. The Mexican Secretary of Energy expects that 37.8% will be provided by conventional technologies, and 62.2% through clean technologies. Thus, there are 35,530.07 MW of additional capacity pending on future clean projects. This case shows the financial and ethical dilemmas in order to achieve these goals with a focus on sustainability, seeking to minimize emissions of greenhouse gases. Aging coal plants, cheap natural gas, and a downward trend in the price of renewable energy, are signs of a dramatic structural change in the world electricity sector. These trends are likely to hold in the future where solar technologies have made up a bigger share, and regardless of their small percentage of participation in the energy mix, solar energy could reveal a surprising new story for the world. Facing CFE’s challenge, this case explores the role that solar photovoltaic energy could play where the sky is the limit.