Energy Blue Print
Archive 2012 - Mexico

Moving from principles to action for energy supply that mitigates against climate change requires a long-term perspective. Energy infrastructure takes time to build up; new energy technologies take time to develop. Policy shifts often also need many years to take effect. In most world regions the transformation from fossil to renewable energies will require additional investment and higher supply costs over about twenty years

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5.4 future investments in the power sector

It would require $ 1,105 billion in investment for the Energy [R]evolution scenario to become reality (including investments for replacement after the economic lifetime of the plants) - approximately $ 867 billion in total (or $ 22 billion annually) more than in the Reference case ($ 238 billion). Under the Reference version, the levels of investment in conventional power plants add up to almost 55% while approx 45% would be invested in renewable energy and cogeneration (CHP) until 2050.

Under the Energy [R]evolution scenario, however, Mexico would shift almost 98% of the entire investment towards renewables and cogeneration. Until 2030, the fossil fuel share of power sector investment would be focused mainly on CHP plants. The average annual investment in the power sector under the Energy [R]evolution scenario between today and 2050 would be approximately $ 28 billion.

Because renewable energy has no fuel costs, however, the fuel cost savings in the Energy [R]evolution scenario reach a total of $ 1,671 billion up to 2050, or $ 42 billion per year. The total fuel cost savings therefore would cover more than twice the total additional investments compared to the Reference scenario. These renewable energy sources would then go on to produce electricity without any further fuel costs beyond 2050, while the costs for coal and gas will continue to be a burden on national economies.