MEXICO

(Updated 2016)

1. GENERAL INFORMATION

1.1. Country Overview

Note: The content of this section, including Tables 1 and 2, has been removed by the IAEA to better focus the report on nuclear power.

1.2. Energy Information

Mexico is a significant crude oil exporter, the third largest in the Americas, but the country is a net importer of refined petroleum products. Mexico's largest trading partner is the United States of America, which is the destination for most of its crude oil exports and the source of most of its refined product imports.

Oil is a crucial component of Mexico's economy. The oil sector generated 11% of the country's export earnings in 2014, a proportion that has declined over the past decade, according to Mexico's central bank. More significantly, earnings from the oil industry (including taxes and direct payments from PEMEX) account for one-third of total government spending. The 2015 federal budget was based on Mexican crude oil being valued at USD 79 per barrel, although Mexican Maya crude oil averaged less than USD 50 per barrel through the first seven months of 2015. Declines in oil production have a direct impact on the country's economic output and on the government's fiscal health, particularly as refined petroleum product consumption and import needs grow.

Mexico's total energy consumption in 2014 consisted mostly of petroleum (45%), followed by natural gas (40%). Natural gas is increasingly replacing oil in electric power generation. However, because Mexico is a net importer of natural gas, higher levels of natural gas consumption will likely depend on more pipeline imports from the United States of America or liquefied natural gas (LNG) imports from other countries. All other fuel types contribute relatively small amounts to Mexico's overall energy mix. The country also has growing geothermal and wind energy capacity for electricity generation.

Mexico produced an average of 2.8 million barrels per day (b/d) of petroleum and other liquids during 2014. Crude oil accounted for 2.4 million b/d, or 87% of total output, with the remainder attributable to lease condensate, natural gas liquids, and refinery processing gain. Mexico's total oil production had been declining substantially, 27% from its peak in 2004. Notably, crude oil production in 2014 was at its lowest level since 1986 and has continued to decline thus far in 2015.

The Energy Reform, raised by the federal government in 2013, has as objective, detonate the potential of the Mexican economy to create quality employees, reduce the energy cost and raise the incomes of the State to canalize it into social programs, invest in human resources that the country requires and in a long- term savings found on benefit on future generations. The reforms allow for new exploration and production contract models: licenses, production-sharing, profit-sharing, and service contracts. Previously, only service contracts, in which companies were paid for services and were not allowed shares or profits derived from the hydrocarbon resources, were allowed for foreign firms.

The Energy Reform establishes a new model of industry, both the hydrocarbon sector to the electricity sector. The new energetic model allows investment in the industry and concurrent participation of public and private companies. Particularly, the reform proposes the most important modernization in the Mexican energetic companies, in order to be more competitive and profitable, maintaining its public character. By becoming in State Productive companies, they can join and compete with other companies that participate in the industry, under the industrial safety criteria, environment protection, social responsibility and economic efficiency in benefit of the Mexicans.

PEMEX will remain state-owned, but it will be given more budgetary and administrative autonomy and will have to compete for bids with other firms on new projects. As stipulated by the reforms, PEMEX was allowed first refusal on developing Mexican resources before private companies began bidding. This phase was known as Round Zero and resulted in PEMEX being awarded the right to develop 83% of the country's proved and probable oil reserves.

The reforms also call for expanding the regulatory authorities of SENER and CNH, and for creating a new environmental protection agency, the Agencia de Seguridad, Energía y Ambiente (ASEA).

In July 2015, the first auction phase of Round One offered 14 offshore blocks for exploration and production to private investors. Because of low crude oil prices and the terms of the contracts, only 2 of the 14 blocks received adequate bids to be awarded. A consortium of three companies, Sierra Oil & Gas, Talos Energy, and Premier Oil, was awarded the second and seventh block of the auction.6 Subsequent phases of Round One were postponed as CNH adjusted rules surrounding the auctions to promote more bidding on the offerings. The fourth phase of Round One includes the lucrative deepwater blocks and is expected to draw more attention from the major international oil companies. The fifth phase of bidding, which offers shale and other nonconventional tenders, has been suspended.

Source: http://www.gob.mx/sener/reformas/preguntas-frecuentes-acerca-de-la-reforma-energetica

1.2.1. Estimated available energy.

Mexico is one of the largest producers of petroleum and other liquids in the world, the fourth-largest producer in the Americas after the United States of America, Canada, and Brazil, and an important partner in U.S. energy trade. In 2014, Mexico accounted for 781,000 b/d, or 11% of U.S. crude oil imports.

According to the Oil & Gas Journal (OGJ), Mexico had 9.8 billion barrels of proved oil reserves as of the end of 2014. Most reserves consist of heavy crude oil varieties, with the largest concentration occurring offshore of the southern part of the country, particularly the Campeche Basin. There are also sizable reserves in onshore basins in the northern parts of Mexico.

According to SENER, Mexico had 54.4 gigawatts (GW) of effective generation capacity in 2014. The country generated an estimated 258 billion kilowatt-hours (kWh) of electric power in 2014, representing an increase of nearly 25% from a decade ago. Power plants using fossil fuels provide 78% of Mexico's electricity capacity and generation. The industrial sector accounts for 58% of Mexico's electricity sales, while the residential sector is responsible for slightly more than one quarter of electricity sales.

Mexico has been a modest exporter of electricity to the United States of America since 2003. In 2013, Mexico exported 7.8 million kWh to the USA, or 11% of total electricity imports. Electricity sales from Mexico to the USA could increase in the midterm, as the U.S. Department of Energy recently issued a presidential permit for construction of a transmission line across the U.S.-Mexico border. When completed, the transmission line will supply electricity from a Mexican wind farm to the California market. Mexico also exports smaller amounts of electricity to Belize and Guatemala.

Sources: https://www.eia.gov/beta/international/analysis.cfm?iso=MEX

TABLE 3: ESTIMATED AVAILABLE ENERGY RESOURCES

Fossil Fuels Nuclear Renewables
Solid (1)
(Million tons)
Liquid (2)
(Million crude oil equivalent barrels)
Gas (3)
(Thousand million cubic feet)
Uranium (4)
(metric tons)
Hydro (5)
(TW)
Total Amount in Specific Units 1 211 34 933 46 309 3 758 60
Total Amount in Exajoules (EJ) 0.29 222.33 48.44 0.32 0.13

Source: IAEA Energy and Economic Database.

(*) Source classification: 20th WEC Survey of Energy Resources, 2008 and Uranium 2009: Resources, Production and Demand ("Red Book")

(1)Coal including Lignite: proved recoverable reserves, the tonnage within the proved amount in place that can be recovered in the future under present and expected local economic conditions with existing available technology.

(2)Crude oil and natural gas liquid (Oil Shale, Natural Bitumen and Extra-Heavy Oil are not included): proved recoverable reserves, the quantity within the proved amount in place that can be recovered in the future under present and expected local economic conditions with existing available technology.

(3)Natural gas: proved recoverable reserves, the volume within the proved amount in place that can be recovered in the future under present and expected local economic conditions with existing available technology.

(4)Reasonably Assured Resources (RAR) under <="">

(5)Hydropower: technically exploitable capability, the amount of the gross theoretical capability that can be exploited within the limits of current technology. Source: IAEA Energy and Economic Database.

1.2.2. Energy Statistics

Generation

The generation sector was opened to private participation in 1992. However, the CFE is the dominant player in the generation sector, with two-thirds of installed capacity. As of the end of February 2012, private generators held about 23.3% of generation capacity, mostly consisting of combined-cycle gas-fired turbines (CCGFT). Private generators have to sell all their output to CFE, as they are not allowed to sell directly to users. There is indeed a commercialization monopoly controlled by CFE.

The electricity sector in Mexico relies heavily on thermal sources (76.3% of total installed capacity), followed by hydropower generation (21.9 %). Although exploitation of solar, wind, and biomass resources has a large potential, geothermal energy is the only renewable source (excluding hydropower) with a significant contribution to the energy mix (1.9% of total generation capacity). Expansion plans for the period 2006-2015 estimate the addition of some 14.8 GW of new generation capacity by the public sector, with a predominance of combined cycles.

Mexico has 16,295 MW of total renewable installed capacity as of 2014, predominantly in hydroelectric, wind, solar photovoltaic (PV), and geothermal capacity, those represented 3% of Mexico's electricity generation in 2013. Mexico had 980 MW of geothermal capacity, making the country fifth in terms of global geothermal capacity. In 2015, 100 MW of geothermal projects are expected to supplement the decreased generation at the 645 MW Cerro Pietro Geothermal field in Baja California, the key component of Mexican geothermal generation.

The largest source of renewable power generation is hydroelectric power. Mexico had 11,632 MW of hydro capacity in 2013, which accounted for 18% of the country's total installed electrical capacity. Hydroelectricity supplied about 15% of Mexico's electricity generation in 2014. The largest hydroelectric plant in the country is the 2,400 MW Manuel Moreno Torres, at the Chicoasén dam in Chiapas. Another major hydroelectric project, the 750 megawatt La Yesca facility, was completed in November 2012. These larger hydroelectric projects are supplemented by smaller hydroelectric facilities (categorized as less than 30 MW each) that are being developed by both CFE and the private sector. There are an estimated 289 MW of smaller hydroelectric projects coming online by 2016.

Solar power has received significant attention in northern Mexico, where the first large-scale solar power project, Aura Solar I, began operations in 2013. This project increases Mexican solar capacity by 30 MW to 434 MW.

Several wind projects are in development in Mexico's Baja California and in southern Mexico with the aim of boosting Mexico's wind generation capacity from 2 GW to 12 GW by 2020. Mexico is hoping to achieve this goal by encouraging $14 billion in investment between 2015 and 2018. Much of the current wind generation capacity is located in Oaxaca, where the Isthmus of Tehuantepec has especially favorable wind resources and has been a focus of government efforts to increase wind capacity. From 2010 to 2013, the Oaxaca region experienced a near 667% increase in wind generation capacity with the additions of five major projects (Oaxaca I, II, III, and IV, and La Venta III), bringing Oaxaca's wind generation capacity to 1,751 MW. In Baja California, Sempra U.S. Gas & Power is developing the 156 MW Energía Sierra Juarez 1(ESJ) wind farm.

Electricity from the wind farm will be exported to the United States of America on a new transmission line, powering an estimated 65,000 homes in San Diego County in California. ESJ became commercially operational in 2015 with a potential total capacity of more than 1.2 GW. With these developments, Mexico is poised to become one of the world's fastest-growing wind energy producers; however, Mexico's domestic transmission infrastructure must be updated if the country is to capitalize on this increasing potential.

TOTAL GENERATION PERMITS

Modality
Number of permits
Total Capacity
MW/year

Percentage of total national capacity (%)
Autogeneration
574
18 588.33
35.44
Cogeneration
134
7 946.76
15.15
Export
7
1 849.82
3.53
Generation
13
347.42
0.67
Import
47
870.72
1.67
Independent Producers
31
15 494.02
29.54
Small Producers
277
6 843.06
13.05
Continuous Own Uses
36
512.46
0.98
TOTAL
1119
52 452.60
100%

Source: Energy Regulatory Commission (CRE)

Source: Comisión Federal De Electricidad; Informe Anual 2015

TABLE 4: ENERGY STATISTICS (EJ)

Exa-Joules (EJ)

Average Annual Growth Rate (%)
1970 1980 1990 2000 2005 2007 2012 2015 2000 - 2007
ENERGY CONSUMPTION**
TOTAL 1.58 3.76 4.92 8.92 14.27 15.12 21.00 17.5 1.04
- Solids 0.17 0.23 0.26 0.40 0.22 0.25 0.11 0.46 1.16
- Liquids 0.99 2.60 3.46 4.44 7.76 7.03 12.86 13.2 1.17
- Gases 0.42 0.93 0.97 1.64 1.89 2.12 3.04 2.32 1.02
- Nuclear - - - 0.09 0.06 0.11 0.09 0.12 1.02
- Hydro - - 0.23 0.28 0.61 1.01 1.21 1.4 1.09
- Other Renewables - - - - - - - - -
ENERGY PRODUCTION
TOTAL 1.74 5.89 7.77 10.20 16.75 18.37 26.63 24.35 1.07
- Solids 0.16 0.19 0.25 0.34 0.94 0.94 0.33 0.36 0.79
- Liquids 0.98 4.48 6.26 7.86 8.75 8.95 12.26 12.8 1.09
- Gases 0.45 1.04 0.96 1.55 2.39 3.45 2.54 2.87 0.96
- Nuclear - - 0.02 0.09 0.11 0.11 0.09 0.12 1.02
- Hydro - - 4.00 9.06 7.46 7.25 8.70 8.2 1.03
- Other Renewables - - - - - - - - -
NET IMPORT (IMP - EXP)
TOTAL -0.07 -1.93 -2.74 -3.05 -223.89 -167.78 -2.307 0.003 0.04

Source: Comisión Federal De Electricidad; Informe Anual 2015.

Consumption of electricity in 2015 was 212 TW, which corresponds to 2015.27 KWh per capita. Consumption share by sector was as follows:

Fig. 1. Consumption of Electricity

Source: http://sie.energia.gob.mx/bdiController.do?action=cuadro&cvecua=IE0C01

Source: Sistema de Información Energética: SENER (1) Independents Productors Power

1.2.3. Energy policy

The Ministry of Energy (SENER) determines Mexico's energy policy within the current national framework, with the purpose of ensuring a competitive, high quality, affordable, reliable and environmentally sound energy supply to fuel economic growth.

This responsibility entails ensuring wide-spread access to affordable energy services, as well as fostering the development of industry leaders at the forefront of technology innovation, in both public and private firms.

SENER advocates energy efficiency through a substantial increase in international funds for research, development, diffusion and deployment of green appliances. It promotes the use of alternative sources of energy to deepen security of supply.

Diversification has been promoted especially in the electricity sector, with the inclusion of geothermal energy, nuclear energy, some solar energy, in rural areas isolated from the electrical grid, and recently with the addition of some wind energy.

The concept of integrating the energy markets of Mexico, the United States of America, and Canada is gaining popularity. Numerous pipelines and transmission lines already connect the United States of America and Canada, though few span the U.S.-Mexico border. Companies are building power plants in northern Mexico to generate electricity to satisfy rapid demand growth from industrial and residential users. Given Mexico's less burdensome environmental regulations relative to those of California, it is possible that more power plants will be planned for northern Mexico to help satisfy the energy needs of both northern Mexico and southern California. While greater integration of the United States of America and Mexico is progressing, Mexico should not be seen as a solution to future electricity-supply shortfalls in U.S. markets, such as those in California in 2001, certainly not in the short- to mid-term.

Mexico is a net energy exporter, and the difference between its energy production and consumption is mainly comprised of crude oil exports.

Energy consumption in 2010 was estimated to increase to about 9.0 Quads (*) at an average rate of increase of 2.8% per year.

* 1 Quad = 1 quadrillion BTUs

1.3. The electricity system

1.3.1. Electricity System and Decision Making Process

The Federal Electricity Commission is a Mexican government entity that generates, transmits, distributes and sells electricity to more than 38.4(1) million customers; this represents a compound annual growth in number of customers in the last ten years of 5.8%. The infrastructure for generating electric power is composed of 215(1) power station with an installed capacity of 54,374.70(2) megawatts (MW). 23.7 % of installed capacity corresponds to 28 stations built with private capital by Independent Power Producers (PIE), In the CFE, electricity is produced using different technologies and different primary energy sources. It has power plants, hydroelectric dams, coal plants, geothermal plants, wind power plants and nuclear plants.

To conduct electricity from generating plants to the home of each customer, the CFE has over 820,602(2) kilometers of transmission and distribution lines.

The power supply delivery to 194,399(1) locations, of which 190,655 are rural and 3,744 urban, even when the electric power service reaches 98.33% of the population, there are 70,000 villages without electricity, with a small number of inhabitants.

While the household sector comprises 88.6% of the customers, their sales represent 26.32% of total retail sales. A reverse situation occurs in the industrial sector, where less than 1% of customers represent 57.85% of sales.

The CFE is also the federal government agency responsible for planning the national electricity system, which is reflected in the Development Program of the National Electricity System (PRODESEN). This document brings together the relevant elements of the indicative programs for installation and removal power stations and programs of expansion and modernization of the national transmission grid and general distribution networks, within the period 2015-2029. This will provide guidance productive investment in infrastructure to meet the demand for this sector and in accordance with the provisions of the new Electricity Industry Act and its Regulations, processing is handled by the Ministry of Energy (SENER).

The company is committed to providing excellent services, ensuring a high quality in all its processes and operating at the level of the best electric companies in the world.

CFE is a public agency with legal personality and its own patrimony

  • (1) Reporte anual 2014 CFE (2) Informe anual 2014 CFE

1.3.2. Structure of electric power sector

Energy policy and, specifically, electricity industry policy, is the responsibility of the Ministry of Energy. Policy for the electricity industry is published in a document called "Electricity sector outlook", a 15 year program revised annually that incorporates analyses of present electricity demand and supply, the projected evolution of national and regional demand, the proposed expansion plan for generation, transmission and distribution capacity and the estimation of required investments. The elaboration of this program is coordinated by the Ministry of Energy, and done with the help of a multidisciplinary group formed by the Federal Electricity Commission (CFE), the Mexican petroleum company (PEMEX), the energy regulatory commission (CRE) and the Electricity Research Institute (IIE).

The external electricity trade is carried out through nine interconnections between the United States of America and Mexico and one interconnection with Belize. These connections have primarily been used to import and export electricity during emergencies. In 2014, Mexico exported 1.286(1) TWh of electricity from the United States of America, while importing 0.63(2) TWh.

(1) http://www.indexmundi.com/g/g.aspx?c=mx&v=82&l=es

(2) http://www.indexmundi.com/g/g.aspx?v=83&c=mx&l=es

1.3.3. Main Indicators

The total capacity of electrical plants installed in Mexico in 2014 was 54.37 GWe(1) . From the total capacity installed, 72.89% is thermal, 21.45% hydro, 1.53% geothermal and 5.64% nuclear. Mexico has a single nuclear power plant Laguna Verde which has the capacity of 1,608 MWh and two reactors. Laguna Verde is operated by CFE .The general trend in thermal generation is a decline in petroleum-based fuels and growth in natural gas and coal. Since Mexico is a net importer of natural gas, higher levels of natural gas consumption (i.e. for power generation) will likely depend upon higher imports from either the United States of America of via liquefied natural gas (LNG).

Gross generation in Mexico in 2014 was 250.87 TWh(1) that same year (not including cogeneration and autogeneration, with 81.73% coming from conventional thermal sources.

The expansion program contemplated by SENER for the period 2012-2026 includes the addition of 44,532 MW by the public service.

(1)http://sie.energia.gob.mx/bdiController.do?action=cuadro&subAction=applyOptions

(2) http://www.indexmundi.com/g/g.aspx?c=mx&v=81&l=es

TABLE 5: INSTALED CAPACITY, ELECTRICITY PRODUCTION AND CONSUMPTION

Average Annual Growth Rate (%)
1980 1990 2000 2005 2007 2011 2013 2015 2007 - 2015
Capacity of Electrical Plants [GWe]
- Thermal 10.77 19.23 29.15 33.67 37.27 38.13 39.12 39.04 1.01
- Hydro 6.06 7.88 9.62 10.53 11.34 11.45 11.51 12.02 1.01
- Nuclear - 0.68 1.36 1.36 1.36 1.36 1.4 1.5 1.02
- Wind - - 0.00 0.00 0.09 0.087 0.60 0.86 1.77
- Geothermal 0.15 0.70 0.85 0.95 1.00 0.887 0.82 0.87 1.00
- Other Renewables - - - - - - - - -
TOTAL 16.99 28.48 40.98 46.53 51.02 51.77 53.45 54.29 1.01
Electricity Production (TWh)
- Thermal 49.13 90.84 145.52 171.440 175.812 205.135 210.72 212.96 1.01
- Hydro 16.91 23.54 33.08 27.61 27.04 35.79 27.44 30.12 0.96
- Nuclear - 2.94 8.22 1.80 10.42 10.08 11.80 11.57 1.04
- Wind - - 0.01 0.01 0.25 0.35 1.81 0.20 0.87
- Geothermal 0.92 5.12 5.90 7.30 7.65 6.5 6.07 6.29 0.99
- Other Renewables - - - - - - - - -
TOTAL** 66.96 122.44 192.73 217.17 231.18 257.88 257.85 261.14 1.00
Total Electricity Consumption (TWh)
TOTAL 60.5 107.1 182.8 201.6 205.2 229 234 212.2 0.98

Source: Directive information Resume CFE, 2015.

TABLE 6. ENERGY RELATED RATIOS

2012 2014
Energy consumption Per Capita 75.183 72.041(1)
Electricity consumption Per Capita 1997.44 2015.27(1)
Electricity Production % 36.84 37.93
Nuclear/Total Electricity % 8.55 5.64(3)
Ratio of external dependency 0.8 0.88(2)

Reference:

(1)http://sie.energia.gob.mx/bdiController.do?action=cuadro&cvecua=IE0C01

  • (2)Sistema de Información Energética; Sector Eléctrico; Comercio exterior.

  • (3)Sistema de Información Energética; Sector Eléctrico; Generación bruta de energía por tecnología.

2. NUCLEAR POWER SITUATION

2.1. Historical development and current organizational structure

2.1.1. Overview

The National Commission for Nuclear Energy (CNEN) was established in 1956, to pave the way for the introduction of nuclear power and nuclear applications in Mexico. CNEN encompassed all the nuclear activities in the country (exploration for uranium, nuclear research, regulation, etc.) but the generation of electricity by nuclear means, which was the sole responsibility of the Federal Electricity Commission (CFE), and the utilization of radioisotopes. Later, CNEN was transformed into the National Institute on Nuclear Energy (INEN), which redefined the attributes but with very few changes.

In 1979, INEN was replaced by three organizations: The National Institute of Nuclear Research (ININ), in charge of all the aspects related to research, Mexican Uranium (URAMEX), in charge of uranium exploration and eventually uranium production, and the National Commission on Nuclear Safety and Safeguards (CNSNS), in charge of nuclear regulation and safeguards. In 1985, URAMEX was dissolved and all its functions passed to the Ministry of Energy.

Mexico’s interest in nuclear power dates back to the early 60s. The first concrete steps were taken in 1966, when a preliminary investigation of potential sites for nuclear power stations was carried out under the auspices of CFE and the National Commission for Nuclear Energy. At the end of the decade, the government concluded that nuclear power plants might play a major role. In early 1969, CFE decided to invite bids for a 600 MW (e) nuclear power plant of a proven type, and invitations to tender were sent to several manufacturers. Bids were received at the beginning of 1970, but the final decision, with up-to-date bids, was taken in the middle of 1972. In 1976, construction of the Laguna Verde Nuclear Power Plant (LVNPP) was initiated, comprising two reactors of 654 MW (e) net each. The first unit went into commercial operation in July 1990, and the second in April 1995.

2.1.2. Current organizational chart(s)

Fig. 2: Current organizational chart(s)

2.2. Nuclear power plants: Overview

The Laguna Verde reactors had an original capacity of 654 MWe per unit, but in 2010 they were upgraded to 805 MWe. In 2014, the LVNPP generated 9,677.208 GWh, equivalent to 3.2% of total generation in the country. With the operation of the LVNPP, Mexico avoided the emission on between 6 and 8 million tons of CO2 annually.

In 2015, the LVNPP generated 11,577.138 GWh, its capacity factor was 88.30% (79.91 for unit 1 and 95.56 for unit 2), due to refueling and power upgrade process

2.2.1. Status and performance of nuclear power plants

As mentioned above, there is only one nuclear plant in operation in Mexico, with two BWR reactors of 805 MW (e) net each (Table 7). For the time being, there are no plans regarding new units or new plants. The National Energy Plan, issued in 1990, is still currently valid; however it will probably be revised in the near future.

Laguna Verde unit 1 went into commercial operation in 1990. Its performance has been quite good since the very beginning. Unit 2 went into commercial operation in April 1995.

TABLE 7: STATUS AND PERFORMANCE OF NUCLEAR POWER PLANTS

Reactor Unit Type Net
Capacity
[MW(e)]
Status Operator Reactor
Supplier
Construction
Date
First
Criticality
Date
First Grid
Date
Commercial
Date
Shutdown
Date
UCF
for
2015
LAGUNA VERDE-1 BWR 777 Operational CFE GE 1976-10-01 1988-11-08 1989-04-13 1990-07-29 79.9
LAGUNA VERDE-2 BWR 775 Operational CFE GE 1977-06-01 1994-09-06 1994-11-11 1995-04-10 95.6
Data source: IAEA - Power Reactor Information System (PRIS).
Note: Table 7 is completely generated from PRIS data to reflect the latest available information and may be more up to date than the text of the report.

2.2.2. Plant upgrading, plant life management and license renewals.

In 2006, plans for a power uprate of 20% were announced, that would bring the plant's capacity up to 1620 MWE. General Electric performed the engineering analysis to determine the necessary plant modifications and to support the safety analysis report, necessary for approval of the power uprate by the Mexican nuclear regulator.

The power upgrade is one of the most effective ways to reduce the cost of electricity generation, in terms of unit cost and run time.

The main modifications consisted in changing the turbine, the turbogenerator, the condenser, the electric generator, the main steam reheater and the feedwater heater. It was also necessary to increase the number of the fuel assemblies to be replaced in each reload.

2.3. Future development of Nuclear Power

2.3.1. Nuclear power development strategy

Studies and analyses are being conducted on the possibility of increasing the nuclear fleet, but this decision has not yet been taken.

The National Energy Strategy proposes the possibility of developing a nuclear programme which could include measures to strengthen the development of human resources, strengthen national industrial and technological capabilities existing in the nuclear field and to strengthen the regulatory body (SENER, 2013).

The plant has entered into agreements with the local authorities, the Ministry of Defense, the Ministry of the Navy and other pertinent organization for cooperation in case of a nuclear or radiological emergency.

Currently, there are studies to expand the installed capacity of the Laguna Verde Nuclear Power Plant (CNLV). Among the presentations of different suppliers of nuclear power technology, General Electric -Hitachi has promoted different types of reactors for Laguna Verde, as ABWR (Advanced Boiling Water Reactors) and ESBWR (Economic Simplified Boiling Water Reactor). This type of reactor, there is not yet any installed or under construction.

2.3.2. Project management

Not Applicable

2.3.3. Project funding

Not Applicable

2.3.4. Electric grid development

Not Applicable

2.3.5. Site Selection

Not Applicable

2.4. Organizations involved in construction of NPPs

There are no NPP suppliers in the country. The main components of the Laguna Verde plant were acquired abroad. At the beginning, the main architect engineer for unit 1 was the Electric Bond and Share Company (EBASCO). Later on, and especially for unit 2, CFE acted as architect engineer, with the advice of EBASCO and General Electric (GE).

2.5. Organizations involved in operations of NPPs

The Laguna Verde plant is owned by CFE, and the operation and maintenance is performed by CFE personnel. In the past, operator training occurred at several similar installations in Spain and the United States of America. Nowadays, training mainly happens locally, using the simulator which has been installed on the plant's premises.

2.6. Organizations involved in decommissioning of NPPs

None

2.7. Fuel cycle including waste management

Mexico does not produce uranium due to the low cost of uranium currently available on the world market. For the next few years, the uranium required for reloads of Laguna Verde will be obtained from the world market, since currently there are no plans for producing uranium in Mexico. Some 1,300 tons of uranium reserves have been identified in Mexico, but these are too expensive to exploit considering current prices.

Uranium is bought either as hexafluoride or as a concentrate that is converted to hexafluoride by TENEX in Russia through a long-term contract. Enrichment is provided by NUKEM in the United States' Department of Energy, also through a long-term contract. Fuel fabrication currently occurs in the United States of America, by Global Nuclear Fuels Americas.

As for spent nuclear fuel, the current plans are to store it at the reactors' pools. These have been re-racked to increase the original capacity in order to accommodate the spent fuel that the reactors will produce during their expected operating life. CFE has decided on the usage of an independent Spent Fuel Storage Installation (ISFSI) to increase the long term storage capability due to the life extension that CFE is pursuing and future, expansion of the Mexican nuclear power capacity, new technologies, etc.

2.8. Research and development (D&R)

The main research centers are the National Institute of Nuclear Research (ININ) and the Electric Research Institute (IIE). Within the field of peaceful uses for nuclear energy, ININ has defined 11 research and development topics to which its scientific and technological activities are directed in order to improve population living conditions.

2.8.1. R&D organizations

ININ is focused on the creation and development of technology, carrying out research projects in response to energy sector needs, as well as in order to develop disciplines from which our country could benefit.

This institute has qualified personnel, recognized both nationally and internationally. These are expert in several sciences and engineering areas, which provides the institute with the ability to support multidisciplinary projects.

2.8.2. Development of advanced nuclear technologies

None

2.8.3. International co-operation and initiatives

  1. Agreement of co-operation between the Mexican Electric Research Institute and the Electrical Power Research Institute of the United States of America (US EPRI) for the development and application of the RETRAN-3 Code for NPP's operational transient analysis.

  2. Agreement of co-operation between the Mexican Electric Research Institute and the USEPRI in the development and application of the R & R Workstation for NPP's probabilistic risk analysis applications.

  3. Agreement of co-operation between the Mexican Electric Research Institute and the USEPRI in the development and application of the MAAP-3 Code for NPP's severe accidents analysis.

  4. Agreement of co-operation between the Mexican Electric Research Institute and the USEPRI in the development and application of the CPM-3 Code for the nuclear data library generation for advanced fuels.

  5. Agreement of co-operation between the Mexican Electric Research Institute and the Rensselear Polytechnic Institute of the United States of America for the development and application of the April Code I for NPP's severe accidents analysis.

  6. Agreement of co-operation between the Mexican Electric Research Institute and the Cuban Institute for Hydrography for the development of the Northwest Caribbean Sea Oceanographic Chart. I

2.9. Human resources development

Laguna Verde NPS still having a good support from Subject matter Experts performing as instructors. Currently we have around 400 qualified Instructors, 30% are retired SME and 70% are active workers. The Retired instructors are specialized workers in areas such as Maintenance, Nuclear Safety, Engineering, Operations; even we have some of them qualified as Simulator instructors.

The training provided in a year to the station personnel is around 14 days of training for non-licensed personnel and around 35 days of training for licensed personnel. The number of teaching packages prepared by the GCN is a lot higher than those produced by the training centers from Comisión Federal de Electricidad (CFE). Annually we are having around 2,000 Training activities in around 500 different topics.

Training includes the training packages (or lectures) required by the substantive processes. Currently we are using the Systematic Approach to Training (SAT) to develop the training programs on 10CFR50.120 job positions.

We maintain replacement personnel as trainees in order to guarantee the replacement of qualified personnel due to vacations, sick leaves and commissions, as well as attending to the generational change because of retirements. In our Station, the institutional goal has been widely exceeded.

Leaving of the company and voluntary retirement levels are practically nil, so our retirement projections are a string basis for the succession planning.

2.10. Stakeholder Communication

The Comisión Federal de Electricidad (CFE), trough of Laguna Verde Nuclear Power Plant has been approached by business groups such as:

Business Coordinating Council http://www.cce.org.mx/

Industrial Club http://www.club.org.mx/

Mario Molina Center http://www.centromariomolina.org/

Forum Chamber of Deputies http://www3.diputados.gob.mx/

Academy of Engineering http://www.ai.org.mx/

The approaches mentioned do not correspond to government agencies. During these dialogues and presentation of studies and books whose content displays data and facts regarding the feasibility of the development of new plants, positive expressions of interest in the growth of installed capacity by nuclear power plants have been enabled.

3. NATIONAL LAWS AND REGULATIONS

3.1. Regulatory framework

The licensing process for a NPP consists of two steps. The first step concludes with the granting of the "Construction Permit", while the second step concludes with the "License for Commercial Operation". The process starts with an application by the utility to build a NPP (in Mexico there is a nationally-owned company, called Federal Electricity Commission), who must present this application to the National Regulatory Body (National Commission on Nuclear Safety and Safeguards), along with the preliminary studies of:

  • Siting· Environmental impact

  • Quality assurance program during construction phase

If these documents satisfy the scope required by CNSNS, the utility is required to present the technical information on the planned NPP. This information includes the construction procedures and fundamental safety systems designed to cope with the operational transients and postulated accidents. This is evaluated by the CNSNS's technical personnel, and a set of questions is then transmitted to the utility before the pouring of any concrete at the site. In the case of Laguna Verde, three "Provisional Construction Permits" were granted to CFE before the socalled.

"Definitive Construction Permit" was issued. This limited-work authorization has been eliminated from the present procedure for future NPPs.

During the actual construction phase, the regulatory body inspects the construction of the NPP and has the legal authority to stop the work if the agreed standards are not met. After the evaluation of the documentation, the regulatory body can issue the "Technical Basis" to grant the construction permit, addressed to the Ministry of Energy as this is the authority legally allowed to grant the permit.

At a certain stage of construction, before the start of the pre-operational test period, the utility is required to present the regulatory body with technical information related to:

  • Final design of the station

  • Final site studies

  • Final environmental impact studies

  • Quality assurance program for NPP operation

  • Final studies on plant performance during transients and postulated accidents

  • Set of operating procedures

  • Operations personnel training program

  • Pre-operational and start-up test program

  • Proposed technical specifications

If these process documents are not clear enough in any technical subject, the regulatory body generates questions to clarify the topic.

As a result of this process, the regulatory body issues the following documents:

  • Permit to load the fuel

  • Set of technical specifications

The technical basis to grant the operation license is addressed to the Ministry of Energy as, according the nuclear law; this is the only authority who can grant such documents.

After the fuel load, the regulator remains in order to monitor the performance of the low power test period and any change of power (0 to 5%, 5 to 10%, 10 to 25%, 25 to 50%, 50 to 75% and 75 to 100%). Engineers of the national body review the test results, and evaluate possible discrepancies between the results and the acceptance criteria.

3.2. Main national laws and regulations in nuclear power

Essential legal texts regulating nuclear power in the country:

  • Constitution of Mexico, Article 27 in force

  • Regulatory Law of Article 27 of the Constitution on Nuclear Matters, published in the official gazette on February 4, 1985

  • Law on Third Party Liability for Nuclear Damage, published in the official gazette on December

  • Radiological Safety Regulations, published in the official gazette on November 8, 1988

  • General Act on Ecological Balance and Environmental Protection, published in the official gazette on January 28, 1987

  • Mexican Official Guidelines NOM-OI2-STPS-1993, on health and safety at work in premises where ionizing sources are handled, stored or carried, published in the official gazette on June 15, 1994

Mechanisms in place for financing decommissioning and waste disposal:

  • For wastes proceeding form radioisotope applications, storage costs are recuperated from the generators of this kind of waste

  • For low- and intermediate-level radioactive wastes proceeding from the Laguna Verde Nuclear Power Plant (LVNPP), they will be stored in a repository using the French approach. This repository will be located on site

  • For high level radioactive wastes, technology progresses and the future nuclear program are being expected in order to make a decision for these kinds of wastes

The final disposal of radioactive waste is the responsibility of the State. In the case of wastes from LVNPP, the Federal Electricity Commission will be in charge of financing its storage. For decommissioning, the State, through CFE, will be in charge of financing this process.

Nuclear power stations are a proven alternative in Mexico, as demonstrated by the high availability, reliability and safety indicators at Laguna Verde. It is also a realistic option, in order to better comply with environmental requirements that are anticipated to become stricter in the future.

However, there are no immediate plans for development of new nuclear facilities due to the high initial investments required. At the moment, these are not competitive when compared with those of plants based on natural gas.

The Ministry of Energy is responsible for nuclear fuel cycle policy and operations, and can by law authorize some of these responsibilities to public entities, such as the Federal Electricity Commission (CFE) and the National Institute of Nuclear Research (ININ).

CFE has been authorized by the Ministry of Energy to negotiate uranium stock purchases, uranium enrichment and fuel fabrication contracts.

An interim waste repository managed by ININ collects all low- and intermediate-level radioactive wastes produced in medical, industrial and other radioisotope applications. This repository will be replaced by a permanent one in the future. Another interim low- and intermediate-level radioactive waste repository is operated by the Laguna Verde Nuclear Plant, to handle wastes coming from the station.

Spent nuclear fuel from the Laguna Verde Plant is being stored in the reactor's pools, which have been re-racked to increase the original capacity in order to accommodate all the spent fuel that the reactors will produce during their expected lifetime. This solution gives CFE the time needed to study all possibilities before adopting a definitive solution, depending on future development regarding the final disposal of high level radioactive wastes.

REFERENCES

  1. Presidencia de la Republica – México lindo el mejor lugar para vivir y sentir

  2. Instituto Nacional de Estadística y Geografía (INEGI).

  3. Sistema Nacional de Información Estadística y Geográfica (SNIEG)

  4. Directorio Estadístico Nacional de Unidades Económicas (DENUE )

  5. Secretaria de Relaciones Exteriores.

  6. Panorama de las Religiones en México 2010 – Instituto Nacional de Estadística y Geografía.

  7. Servicio Meteorológico Nacional – Comisión Nacional de Agua.

  8. México Energy & Sustainability Review: 2014, 102-103.

  9. IRENA Renewable Energy Capacity Statistics 2015.

  10. Comisión Federal de Electricidad.

  11. Sistema de Información Energética con información de SENER.

  12. INEGI. Sistema de Cuentas Nacionales de México.

  13. Sistema de Información Energética con información de CFE, incluye Extinta LyFC.

  14. DATOS 2014 Instituto Nacional de Estadística y Geografía .

  15. Cuéntame - Sección educativa del INEGI.

  16. Informe Anual Comisión Federal de Electricidad 2014.

  17. REPORTE ANUAL 2014 COMISIÓN FEDERAL DE ELECTRICIDAD.

APPENDIX 1: INTERNATIONAL, MULTILATERAL AND BILATERAL


AGREEMENTS

AGREEMENTS WITH THE IAEA
NPT and Tlatelolco related safeguards agreement - INFCIRC No: 197
Entry into force: 14 September, 1973
Additional Protocol
Not signed
Improved procedures for designation of safeguards inspectors
Accepted: 27 February, 1989
Supplementary agreement on provision of technical assistance by the IAEA
Entry into force: 4 June, 1981
ARCAL
Entry into force: April, 1988
New ARCAL Agreement
Ratification: 7 August, 2000
Agreement on the privileges and immunities of the IAEA
Entry into force: 19 October, 1983

OTHER RELEVANT INTERNATIONAL TREATIES
NPT
Entry into force: 21 January, 1969
Tlatelolco
Entry into force: 20 September, 1967
Convention on the physical protection of nuclear material
Entry into force: 4 May, 1988
Convention on early notification of nuclear accidents
Entry into force: 10 June, 1988
Convention on assistance in the case of a nuclear accident or radiological emergency
Entry into force: 10 June, 1988
Vienna convention on civil liability for nuclear damage
Entry into force: 25 July, 1989
Joint Protocol Non-Party
Not signed
Protocol to amend the Vienna convention on civil liability for nuclear damage
Not signed
Convention on nuclear safety
Entry into force: 24 October, 1996
Convention on supplementary compensation for nuclear damage
Not signed
Joint convention on the safety of spent fuel management and on the safety of radioactive waste management
Not Signed
ZANGGER Committee
Non-member
Nuclear export guidelines
Not Adopted
Acceptance of NUSS codes as guidelines in preparation and application of national requirements (Mexican nuclear safety legislation is in conformity with codes)
Summary: Codes should be used by 11 July, 1963

MULTILATERAL AGREEMENTS
Standard agreement concerning technical assistance to Mexico

Parties:
- United Nations Organization (ONU)
- International Labour Organization (ILO)
- Food and Agriculture Organization of the UN (FAO)
- United Nations Educational Scientific and Cultural
- Organization (UNESCO)
- International Civil Aviation Organization (ICAO)
- World Health Organization (WHO)
- International Telecommunicatios Union (ITU)
- World Meteorological Organization (WMO)
- International Atomic Energy Agency (IAEA)
- Universal Postal Union

Transfer of enriched uranium for a research reactor
Entry into force: 18 December, 1963
Parties:
- Mexico
- USA
- IAEA

Lease of source material for a subcritical assembly
Entry into force: 20 June, 1966
Parties:
- Mexico
- USA
- IAEA

Lease of source material for a subcritical facility
Entry into force: 23 August, 1967
Parties:
- Mexico
- USA
- IAEA

Transfer of a training reactor and enriched uranium
Entry into force: 21 December, 1971
Parties:
- Mexico
- Germany
- IAEA

Second supply agreement for transfer of enriched uranium for a research reactor
Entry into force: 4 October, 1972
Parties:
- Mexico
- USA
- IAEA

Supply of uranium enrichment services
Entry into force: 12 February, 1974
Parties:
- Mexico
- USA
- IAEA

Second supply agreement for supply of uranium enrichment services for a second reactor unit
Entry into force: 4 June, 1974
Parties:
- Mexico
- USA
- IAEA

Transfer of title to natural uranium
Entry into force: 23 May, 1989
Parties:
- Mexico
- USA
- IAEA

Plan of operation for a UN Special Fund project in Latin America (Eradication of Mediterranean Fruit Fly)
Entry into force: 29 July, 1965
Parties:
- Mexico
- Costa Rica
- El Salvador
- Guatemala
- Honduras
- Nicaragua
- Panama
- UN Special Fund
- IAEA

Plan of operation for a UNDP project in Latin America,
Entry into force: 31 July, 1968
Parties:
- Mexico
- Costa Rica
- El Salvador
- Guatemala
- Honduras
- Nicaragua
- Panama
- UN Special Fund
- IAEA

Preliminary study of a nuclear electric power and desalinization plant
Entry into force: 7 October, 1965
Parties:
- Mexico
- USA
- IAEA

Agreement concerning provision of a dose assurance service by IAEA to irradiation facilities in its Members States (Exchange of letters)
Entry into force: 18 September, 1985
Parties:
- Mexico
- India
- Syrian Arab Republic
- Argentina
- Philippines
- Malaysia
- Belgium
- Chile
- Switzerland
- Egypt
- Hungary
- Thailand
- South Africa
- Republic of Korea
- Republic of Algeria
- Netherlands
- Lebanon
- Singapore
- Denmark
- Yugoslavia
- Brazil
- China


BILATERAL AGREEMENTS
Agreement between the Government of the United Mexican States and the Government of Australia concerning co-operation in peaceful uses of nuclear energy and the transfer of nuclear material.
Signed on 28 February, 1992; entered into force 1 October, 1992
Agreement between the Government of the United Mexican States and the Government of Canada for Co-operation in the peaceful uses of nuclear energy.
Signed in 16 November, 1994; entered into force 9 May, 1995.

APPENDIX 2: MAIN ORGANIZATIONS, INSTITUTIONS, AND COMPANIES INVOLVED IN NUCLEAR POWER RELATED ACTIVITIES NATIONAL ENERGY AUTHORITIES

Ministry of Energy (SE)
Tel.: +525-55000-6000
Av. Insurgentes Sur 890
Col. del valle http://www.sener.gob.mx
México D.F.
Federal Electricity Commission (CFE)
Tel.: +525-5 52 294400
Paseo de la Reforma 164: http://www.cfe.gob.mx
Col. Juárez
México D.F.
National Commission of the Nuclear Safety
Tel.: +525-590-41-81
And Safeguards (CNSNS) Fax: +525-590-61-03
Dr. Barragan No 1779 Email: cnsns1@servidor.unam.mx
Col. Narvarte
México D.F.

NUCLEAR RESEARCH INSTITUTES
National Institute of Nuclear Research (ININ)
Tel.: +525-521-94-02
Carretera Federal México-Toluca Km. 36.5 Fax: +525-590-61-03
Salazar, Edo. de México. http://www.inin.mx
Electrical Research Institute (IIE)
Tel.: +525-521-94-02
Av. Reforma N1 113 Fax: +525-521-37-98
Col. Palmira http://www.iie.org.mx
Temixco, Morelos.
Instituto de Ciencias Nucleares (UNAM)


OTHER ORGANIZATIONS
Comisión Federal de Electricidad
http://www.cfe.gob.mx/
Agency for the Prohibition of the Nuclear Weapons
In Latin America and the Caribbean (OPANAL)
http://www.opanal.org/
Instituto Mexicano del Petróleo (IMP)
http://www.imp.mx

Name of report coordinator:

Mr. Hugo Capetillo Aguirre

Institution:

Laguna Verde NPP

Comisión Federal de Electricidad

Contacts:

Address: Cd. Cardel

Apartado Postal 61

91296 VERACRUZ

MEXICO

Tel: +55 229 989 9090 4215

Email: hugo.capetillo@cfe.gob.mx



(*)The statistics and data have been updated to December 2015.

Information System (PRIS) and Energy and Economic Data Bank (EEDB), and the World Bank's World Development Indicators.