M EXICO ’ S N EW E NERGY M ODEL O CTOBER 24, 2015 C ESAR C ONTRERAS C HIEF OF S TAFF D EPUTY S ECRETARIAT FOR P LANNING AND E NERGY T RANSITION

I NTRODUCTION I N 2012, M EXICO IS RESPONSIBLE FOR 1.37% (436 M T CO 2 ) OF GLOBAL CO 2 EMISSIONS GENERATED FROM FOSSIL FUELS. F UENTE : IEA, CO 2 E MISSIONS FROM F UEL C OMBUSTION (M EGATONS )

S OURCE : Q UINTA C OMUNICACIÓN N ACIONAL DE M ÉXICO ANTE LA C ONVENCIÓN M ARCO DE LAS N ACIONES U NIDAS SOBRE EL C AMBIO C LIMÁTICO E NERGY SECTOR IS CRUCIAL TO BUILDING A SUSTAINABLE ENERGY ECONOMY I NTRODUCTION

P ATH TO GREEN GROWTH M EXICO ADOPTED AN UNCONDITIONAL INTERNATIONAL COMMITMENT TO CARRY OUT MITIGATION MEASURES … INDC REDUCTION OF 22% OF ITS GHG EMISSIONS BY 2030 A ND 51% OF B LACK C ARBON

O N M ARCH 2015, M EXICO PRESENTED THE I NTENDED N ATIONALLY D ETERMINED C ONTRIBUTIONS (INDC) INDC E NERGY SECTOR CONTRIBUTION I. O IL AND GAS II. E NERGY EFFICIENCY III. C LEAN P OWER G ENERATION

INDC E NERGY SECTOR CONTRIBUTION C OMPONENTSMAIN DRIVERS o C OGENERATION (P EMEX : 9 REFINING AND PETROCHEMICAL PLANTS ) o 15% REDUCTION IN METHANE EMISSIONS (F LARING AND L EAKS ) o R EPLACE HEAVY FUELS WITH NATURAL GAS o C ARBON C APTURE, USE AND STORAGE o S TATE P RODUCTIVE E NTERPRISES o S TRENGTHENING THE R EGULATORY B ODIES o T ECHNICAL BODIES IN CHARGE OF CREATING NEW MARKETS (CENAGAS) o S USTAINABILITY AND ENVIRONMENTAL PROTECTION (ASEA) o CCUS T ECHNOLOGY R OADMAP I. O IL AND G AS

INDC E NERGY SECTOR CONTRIBUTION C OMPONENTSMAIN DRIVERS o S TANDARDS FOR ENERGY EFFICIENCY AND LOW EMISSIONS o P UBLIC P OLICIES TO PROMOTE ENERGY EFFICIENCY o S PECIAL PROGRAM FOR THE SUSTAINABLE USE OF ENERGY (P RONASE ) o N ATIONAL TRANSITION STRATEGY FOR LOW CARBON AND CLEAN FUELS o S TRENGTHENING THE REGULATORY FRAMEWORK (NOM S ) o P ROGRAMS : –R EPLACEMENT OF EQUIPMENT AND APPLIANCES IN SME –D IAGNOSTIC IN 32 MUNICIPALITIES –L IGHTING IN RURAL REGIONS II. R ESIDENTIAL AND C OMMERCIAL

INDC E NERGY SECTOR CONTRIBUTION P OWER GENERATION S USTAINABLE USE OF ENERGY N ATIONAL TRANSITION STRATEGY FOR LOW CARBON AND CLEAN FUELS

INDC E NERGY SECTOR CONTRIBUTION C OMPONENTSMAIN DRIVERS o 35% CLEAN ENERGY BY 2024 o G EOTHERMAL GENERATION o P UBLIC P OLICIES TO PROMOTE CLEAN ENERGY o R EPLACING HEAVY FUELS WITH NATURAL GAS o R EDUCE TECHNICAL LOSSES IN THE N ATIONAL E LECTRICITY S YSTEM. o N EW LEGAL FRAMEWORK ( LIE, LEG, LGCC, LAERFTE ) -N EW ELECTRICITY MARKET -S TATE P RODUCTIVE E NTERPRISE o S PECIAL PROGRAM FOR RE o P RODESEN o I NVESTOR INFORMATION ( INERE ) o R&D AND TRAINING OF HUMAN RESOURCES III. C LEAN POWER GENERATION

P OTENTIAL : D IRECT IRRADIATION D URING J UNE * S OURCE : SENER, I NVENTARIO N ACIONAL DE E NERGÍAS R ENOVABLES R ENEWABLE R ESOURCES : S OLAR  I NSTALLED CAPACITY 56 MW (0.1% OF TOTAL )  P OWER G ENERATION : 85 GW H (0.03% OF TOTAL )  9 P OWER PLANTS C URRENT I NSTALLED C APACITY

 R EGULATORY F RAMEWORK  N EW MARKET (CFE-PEMEX / CENACE-CENAGAS)  I NVESTMENTS / T RANSPARENCY  C LEAN I NDUSTRY (ASEA, CEL S, LEG)  R&D + H UMAN T ALENT  F INANCIAL M ECANISMS F INAL COMMENTS

E NERGY ECONOMIC COMPETITION TELECOMMUNICATIONS FISCAL FINANCIAL LABOR EDUCATIONAL HABEAS CORPUS ELECTORAL POLITICS TRANSPARENCY DEMOCRACY AND FREEDOMINCREASE PRODUCTIVITY R ULE OF LAW NATIONAL CODE OF CRIMINAL PROCEEDINGS OBJECTIVES

M EXICO ’ S N EW E NERGY M ODEL O CTOBER 24, 2015 C ESAR C ONTRERAS C HIEF OF S TAFF D EPUTY S ECRETARIAT FOR P LANNING AND E NERGY T RANSITION

F UENTE :INEGI O FERTA Y DEMANDA GLOBAL DE BIENES Y SERVICIOS ( PARTICIPACIÓN PORCENTUAL ) C ONSUMO PRIVADO C ONSUMO DE GOBIERNO F ORMACIÓN BRUTA DE CAPITAL FIJO E XPORTACIONES I MPORTACIONES V ARIACIÓN DE EXISTENCIAS P RODUCTO I NTERNO B RUTO R EFORMA E NERGÉTICA A VANCES EN LA IMPLEMENTACIÓN

F UENTE : INEGI * E NERGÉTICOS Y T ARIFAS A UTORIZADAS POR EL G OBIERNO ( NO SUBYACENTE ) ** E XCLUYE PETRÓLEO Y CON S ERVICIOS ** I NCLUYE G ENERACIÓN, TRANSMISIÓN Y DISTRIBUCIÓN DE ENERGÍA ELÉCTRICA, SUMINISTRO DE AGUA Y DE GAS POR DUCTOS AL CONSUMIDOR FINAL Í NDICE DE PRECIOS AL CONSUMIDOR (V ARIACIÓN % ANUAL ) G ENERAL E NERGÍA * G ENERAL ** E NERGÍA *** Í NDICE DE PRECIOS AL PRODUCTOR (V ARIACIÓN % ANUAL ) R EFORMA E NERGÉTICA A VANCES EN LA IMPLEMENTACIÓN

F UENTE : S ISTEMA DE I NFORMACIÓN E NERGÉTICA CON INFORMACIÓN DE CFE. P RECIOS MEDIOS DE ENERGÍA ELÉCTRICA POR SECTOR TARIFARIO ( VARIACIÓN % ANUAL ) R ESIDENCIAL : C /K WH I NDUSTRIAL : C /K WH T OTAL : C /K WH C OMERCIAL : C /K WH S ERVICIOS : C /K WH R EFORMA E NERGÉTICA A VANCES EN LA IMPLEMENTACIÓN

INDC