1

Lay 1AC
Renewable Energies are green technology which can be used
as a safe alternative to gasoline and electricity. Similar to
electricity these renewable energies provide a safe and green
alternative to this. Increased investment in Mexicos
Renewable Energy will prove to be advantageous in helping
end the fight against poverty and prevent the horrible famine
of the people in poverty of Mexico. To prevent these atrocities
impacts we present the following plan:

1AC Plan
The United States federal government should substantially
increase its investment in renewable energy production and
cross-border electricity transmission infrastructure toward
Mexico.
However there are several roadblocks in our process to
implement this plan. We call these inherent barriers. Our
inherent barriers are

Inherency
Mexico has a wealth of renewable energy resources available
but increased investment and coordination is essential to
unlocking their full potential
Wood 12 (Duncan Wood, 5/20/12 Department of International Affairs, Instituto

Tecnolgico Autnomo de Mxico, Senior Advisor, Mexico Institute Renewable

Energy Initiative, RE-Energizing the Border: Renewable Energy, Green Jobs and
Border Infrastructure Project, Wilson Center,
http://www.wilsoncenter.org/sites/default/files/RE_Energizing_Border_Wood.pdf)
The potential for renewable energy (RE) development in Mexico has become
a subject of growing interest inside and outside of the country in recent years. A number of
important studies led by governments and academia2 have emphasized
the incredible diversity and richness of renewable energy resources in
Mexico and have called on business, government and civil society to work
toward a more effective exploitation of this potential . In the north of the country, the
issue of RE exports from Mexico to the United States has attracted interest from both the public and private sectors.

Mexico has
natural endowments and structural factors (especially low land and labor costs) that
make the cross-border trade in RE an exciting and potentially highly profitable
sector. Though significant barriers still exist to the large-scale development of this
potential, the effective coordination of efforts from both the private sector and
governments operating at all levels (federal, state, municipal) would provide a much
Focused primarily on wind power generation in northern Baja California, it has become clear that

needed boost. The U.S. and Mexican governments, both individually and jointly,
have noted the possibilities for making a positive impact on the border
through mutually beneficial RE projects. USAID-sponsored work, in conjunction with efforts

from Mexicos Secretara de Energa (SENER), have identified investment opportunities in both geothermal and wind
energy sectors for exporting clean energy to the Californian market, where unsatisfied demand for renewable
energy exists thanks to the Renewable Portfolio Standard (which mandates one-third of California energy come from
RE by 2020). The Border Governors Conference (BGC) has identified RE development as a central component of
their Strategic Guidelines for the Competitive Sustainable Development of the United States-Mexico Transborder
Region. Energy firms from the United States, Mexico and Europe are already involved in developing RE resources at

There is an obvious interest in

this work; what is lacking is a comprehensive strategy to both integrate
these efforts and identify the most effective paths forward. Key stakeholders in
the border in the expectation that demand will continue to rise.

the energy sector have suggested that a focus on renewable energy in the border region requires much more than
a focus on the potential for exporting green energy to the United States. Instead, a more in-depth understanding of
how renewable energy projects impact on the short, medium, and long-term prospects for development in local
communities will improve the chances for sustainable growth in, and community support for, RE projects. Linking RE
generation to economic development in Mexico requires a focus on value chain creation for providers and services.
Information needs to flow from developers to universities and authorities to develop training and certifications for

Local enterprises have already responded to an

expanding market, but with effective coordination, there is far greater
potential.
technicians and engineers.

Energy Poverty Adv.

1AC
Our first advantage is energy poverty. There are people in
Mexico who do not receive sufficient energy in their lives. This
leads to horrible conditions leading eventually to death of
millions of innocent people. Fortunately plan solves, helping
bring green tech to the poor. These cards state this fact lets
start with
A) Mexico has massive renewable energy potential but a
lack development is contributing to energy poverty in
rural areas
Robert Donnelly, 6/28/10, News Security Beat, "US-Mexico cooperation on
renewable energy: building a green agenda,"
http://www.newsecuritybeat.org/2010/06/u-s-mexico-cooperation-on-renewableenergy-building-a-green-agenda/#.Uc0T9vbwJV4
Mexico has large untapped areas of geothermal, wind, and solar potential ,
according to Duncan Wood, author of the Wilson Center report and chair of the Department of International

the country is the worlds

third-largest producer of geothermal energy, and has large geothermal deposits in Baja
California near major U.S. markets, such as San Diego and Los Angeles. Mexico also offers great
promise in wind power, with an estimated potential output of 1,800 to 2,400 megawatts for Baja
Relations at the Instituto Tecnologico Autonomo de Mexico (ITAM). Already,

California and 5,000 megawatts for southern Oaxaca state. Though Oaxaca is far from the U.S. border, it will soon
be able to export electricity to U.S. markets, once Mexicos mainland electrical grid is connected to the United
States. Wood also pointed out that Mexico is rich in solar energy, which could be marketed to the
United Statesparticularly from the Baja California peninsula, which is the only part of the Mexican grid currently
connected the United States. In biomass, he added, little investment has been made so far. Opening New Avenues
for Collaboration With Mexicos oil fields experiencing long-term and, in some cases, precipitous declines, the
country is plotting a future as a green nation, shifting its policy focus toward alternative energy development, said
Wood. In addition, Mexicos renewable sector does have not the blanket prohibitions on private ventures that exist
in the hydrocarbons sector, and regulatory adjustments over the past few administrations have enabled a more
robust private stake in electricity generation and transmission. A U.S.-Mexico taskforce on renewables was recently
formedan announcement timed to coincide with President Felipe Calderons April 2010 state visit to Washington
and there has been high-level engagement on the issue by both administrations. Collaboration between Mexico and
U.S. government agencies through the Mexico Renewable Energy Program has enabled richer development of
Mexicos renewable resources while promoting the electrification and economic development of parts of rural
Mexico. Joe Dukert, an independent energy analyst affiliated with the Center for Strategic & International Studies,
pointed out that U.S.-Mexico collaboration on renewables is a little-acknowledged area of bilateral cooperation, and
stressed the economic complementarities that exist between the two countries on the issue. He noted, for example,
that Mexico was well-positioned to furnish power to help California meet its Renewables Portfolio Standard (RPS) by
2020. Mexico can help them reach these [renewable energy] targets, Dukert said. Yet at the same time, he said

Mexico needs to do more to enhance its profile as a renewable-energy

supplier, and specifically suggested that energy attaches be assigned to the embassy and consulates.
that

Johanna Mendelson Forman, a senior associate with the Americas Program at the Center for Strategic &
International Studies, emphasized the linkages connecting climate change, energy, and economic development.

Mexicos inadequate energy stocks are a problem for the

United States, adding that energy poverty is a real issue in Mexico.
Energy development and climate changewhich are perceived as less polemical than other
issuesare good entry points for a broader U.S.-Mexico dialogue , she remarked.
Forman warned that

B) Energy poverty perpetuates the poverty cycle

IEF 9

International Energy Forum, Reducing Energy Poverty through Cooperation & Partnership, IEF
Symposium on Energy Poverty, December 8-9 2009, www.ief.org/_resources/files/content/events/iefsymposium-on-energy-poverty/background-paper.pdf LN
International Energy Forum (Rome, 20 - 22 April 2008) noted that over two billion
people do not yet have access to modern energy services. This
perpetuates the poverty cycle and inhibits economic development,
availability of clean water and food, while preventing training and
acceptable health standards . Ministers at t he Forum called for the solidarity of IEF countries

The 11 th

and a step change in the collective efforts of all relevant international organizations to help achieve the
Millennium Development Goals by halving poverty rates by 2015. The same message was echoed a t the Jeddah
Energy Meeting (22 June 2008), where Ministers noted that oil price rises and the underlying volatility, will
have an impact on the economies of the consuming and producing countries alike, especially in the least -

recommended that development

assistance from national, regional and international finance and aid
institutions be intensified to alleviate the consequences of higher oil
prices on the least-developed countries . Further still, participants a t the London Energy
M eeting (19 December 2008) noted that high or volatile prices for oil and other
energy sources had a serious impact on low-income countries and agreed
on the importance of multilateral measures to mitigate this effect.
developed countries. The Jeddah Joint Statement

C) Poverty is on-par with an ongoing nuclear war it kills

millions a year
Mumia Abu-Jamal, 9-19-1998, A Quiet and Deadly Violence,
www1.minn.net/~meis/quietdv.htm
in a nation that condones and ignores wideranging "structural" violence, of a kind that destroys human life with a breathtaking
ruthlessness. Former Massachusetts prison official and writer, Dr. James Gilligan observes; "By `structural
We live, equally immersed, and to a deeper degree,

violence' I mean the increased rates of death and disability suffered by those who occupy the bottom rungs of
society, as contrasted by those who are above them. Those excess deaths (or at least a demonstrably large
proportion of them) are a function of the class structure; and that structure is itself a product of society's collective
human choices, concerning how to distribute the collective wealth of the society. These are not acts of God. I am
contrasting `structural' with `behavioral violence' by which I mean the non-natural deaths and injuries that are
caused by specific behavioral actions of individuals against individuals, such as the deaths we attribute to homicide,
suicide, soldiers in warfare, capital punishment, and so on." -- (Gilligan, J., MD, Violence: Reflections On a National
Epidemic (New York: Vintage, 1996), 192.) This form of violence, not covered by any of the majoritarian, corporate,

because of its invisibility, all the more insidious .

How dangerous is it -- really? Gilligan notes: "[E]very fifteen years, on the average, as many people
die because of relative poverty as would be killed in a nuclear war that caused 232
million deaths; and every single year, two to three times as many people die from poverty
throughout the world as were killed by the Nazi genocide of the Jews over a six-year period.
This is, in effect, the equivalent of an ongoing, unending, in fact accelerating,
thermonuclear war, or genocide on the weak and poor every year of every decade, throughout the world."
ruling-class protected media, is invisible to us and

[Gilligan, p. 196]

D) Renewable energy funding key to solving energy poverty,

now is key
UNIDO 9
United Nations Industrial Development Organization, Mexico Forum: renewable energies key to
solving developing worlds energy poverty, sustainable development, October 7 2009,
http://www.unido.org/news/press/mexico-dev.html LN

Swift global action is needed to address energy

poverty in the developing world, and renewable energies should be part of
the planets sustainable future and sustainable industrial development, said
LEON, Mexico, 7 October 2009

participants at an international Forum in Len which was opened today by President Felipe Caldern. The three-day
Global Renewable Energy Forum was organized by the Mexican Ministry of Energy (SENER) and the United Nations
Industrial Development Organization (UNIDO). It brought together over 1000 participants from different parts of the
world, including representatives of governments, international organizations, academia, civil society, and the
private sector. The

level of energy poverty in the developing world is

unacceptable and requires focused global action. Renewable energies are
an inescapable part of our planets sustainable future and sustainable
industrial development, said UNIDO Director-General, Kandeh K. Yumkella. The technology to
change the situation exists, the money exists, the needs of the people are clear. Attacking this issue
needs a focused approach with myriad benefits to development, equity,
peace and security. Renewable energy should be the foundation and
driving force of these efforts. The world's 20 largest cities with a population over 10 million each
use up 75 per cent of the planet's energy. By 2030, worldwide energy consumption is projected to grow 44 per cent.

1.6 billion people in the developing world still have no access to

electricity, and one-fifth of the world population lacks access to electricity,
thermal energy for heat and cooking, and mechanical power for productive
uses. The UNIDO Director-General commended President Calderns role in promoting green economic activities
Yet some

in the Latin American and Caribbean region, saying that environmental initiatives will help seal the deal at the
Copenhagen Summit in December. A deal in Copenhagen would provide a framework for refining and redirecting
energy markets towards low-carbon solutions. The world is moving to an energy-efficient and low-carbon growth
path. This is a fact, he added. Participants called for coordinated action on energy and related issues climate
change and poverty - and pointed to the need to scale up successful small-size renewable energy projects and
programmes. They also said it was important to increase the competitiveness of industries by reducing industrial
energy intensity, to slash the impact on the climate system by reducing the carbon emissions of industries and by
promoting renewable energy technologies, and to increase the viability of enterprises, particularly in rural areas, by
augmenting the availability of renewable energy for productive uses. It is possible to have sustainable
development without slowing down economic growth or reducing the quality of life. This would need to be
underpinned by smart energy policies and practices and substantively changed production and consumption

We must produce more with less material and energy intensities

and consume less of our non-renewable resources, said Yumkella.
patterns.

Econ Adv.

1AC
The wavering econ in Mexico is taking a toll on poor people of Mexico. In Mexico,
many people are dying from famine and malnutrition. Many people go hungry as
they dont have enough money to pay for food and other things.. They are beaten
and raped just to get a little money to feed their family. Boosting the economy
however will stop the inhumane famine that is occurring. . Fortunately plan solves
econ helping take a stand for the starved people of Mexico. Our cards restate this
exact idea beginning with.

A) Domestic Mexican energy production is falling rapidly and

a shift to reliance on US imports is unsustainable. Mexico
needs a new and reliable source of power
Petroleum Economist 7/18 Mexico relies on US as oil supply falls and gas
demand rises, Petroleum Economist, 7/18/2013, http://www.petroleumeconomist.com/Article/3232708/Mexico-relies-on-US-as-oil-supply-falls-and-gasdemand-rises.html
As its oil production keeps falling, Mexico is turning to natural gas to
diversify its energy supply and fuel economic growth. Increasingly, it is relying
on booming US supplies to do the job. According to the World Bank, Mexico's economy
grew at an impressive 3.9% in 2012 and is on track to post growth of 3.5% in 2013. Yet 52 million
people - almost half of the population - live in poverty. Another 11.7
million, or 10%, live in 'extreme' poverty, earning less than $76 per month. President
Enrique Pea Nieto took office in December 2012 promising to increase living
standards. But falling oil production, historically the mainstay of the
country's export revenues, is threatening his ambition. In 2010, oil accounted for 14%
of export earnings and 32% of government revenues, according to the Mexican central bank. Rising crude prices
have offered some relief. The value of Mexican oil exports to the US has doubled in the past eight years, to $35.7

the export and production data tell a different story. Oil

output has fallen to 2.5 million barrels a day (b/d) from a peak of 3.4 million b/d in 2004.
Crude exports to the US have fallen by a third, to 970,000 barrels per day (b/d) in 2012
billion in 2012. But

from 1.48 million b/d in 2004, the first time since 1994 that annual shipments to the US have fallen below 1 million
b/d. The country's share of total US oil imports has plummeted, too, from 16% a
decade ago to 11% in 2012, according to the Energy Information Administration (EIA). Production of heavy oil from
the Cantarell and Ku-Maloob-Zaap offshore oilfields - which supply grades favoured by US Gulf Coast refineries - fell
46% or 1.1 million b/d from 2004 to 2012. This was partially offset by a 200,000 b/d increase of light oil in the same

The question facing policy makers is

whether the country can afford to maintain a nationalist energy stance .
period, but the trend is well established by now.

Mexico nationalised its oil industry in 1938 and its constitution continues to prohibit foreign ownership in the
strategically vital oil and gas sector. In 2008 Mexico's congress passed limited energy sector reforms in a bid to
address declining production and attract much needed foreign technical expertise, but the efforts failed. Pemex, the
state oil company, retains ownership of all crude oil produced in the country, but has entered into partnerships with
foreign companies through multiple services contracts. But major international oil companies have stayed away.

Nieto aims to introduce further reforms in September aimed at increasing private investment.
But this is sure to run into opposition from those opposed to opening the
country's energy sector. However, if Mexico's energy sector continues down
the path it is on the country risks becoming a net oil importer by the end
of the decade. This is already the case in natural gas. Mexican imports of US gas have increased 92% since
2008 as production has fallen by 15% and demand has risen sharply. Mexico now imports 2 billion cubic feet a day
from the US, or 3% of Lower 48 production. At least six new pipelines have been proposed from southern US
unconventional gasfields like the Eagle Ford to meet surging demand in Mexico. Imports could reach 7 billion cf/d,
or 10% of US gas production, by the end of the decade. On 5 May, US pipeline operator El Paso announced longterm agreements to extend its Wilcox lateral from Arizona, adding 185 million cf/d of incremental capacity for
Pemex Gas and Mexican de Cobre, one of the world's largest copper producers. The US drilling boom couldn't have

10
come at a better time for gas-starved Mexico. Mexico's proved gas reserves have fallen to 17 trillion cf from more
than 60 trillion cf a decade ago, largely as a result of under-investment in the upstream. In the same period,
Mexico's gas consumption has risen 160%, to 2.36 trillion cf per year, or 6.5 billion cf/d, driven by fuel switching in
the electricity sector. In 2000, gas supplied a fifth of Mexican power generation. By 2007, this had risen to half.
Consequently, Mexican gas imports have doubled since 2003, to 767 billion cf per year. It will keep growing: plans
are afoot to add 28 gigawatts of new generating capacity, most of it to be fuelled by gas. Mexico's energy
secretariat forecasts that gas demand will grow at a rate of more than 3% annually through 2016. In June, Gdf Suez
Mexico and GE Financial unveiled plans to extend the Mayakan pipeline to the Yucatan Peninsula, adding an
incremental 300 million cf/d of supply under a contract with Mexican power producer CFE. But it's not just pipelines
that have seen growth. In 2012 the country completed the $900 million Manzanillo liquefied natural gas import
terminal, a partnership of Pemex, South Korea's Kogas, Mitsubishi and Samsung on the Pacific coast. Full capacity of

At this point, it makes sense for

Mexico to import cheap US gas to fuel its economic growth. But the surge
in demand is expected to increase North American natural gas prices. Henry
3.8 million tonnes per year is expected online later this year.

Hub futures have inched higher in recent months to more than $4 per million British thermal units (Btu), although

Longer term rises in prices will

eventually force Mexico to decide whether it wants to depend on foreign
supplies or open its upstream to investors that could unlock more domestic energy.
lower demand in the summer eased levels back to $3.63 on 17 July.

B) That spells certain doom for the Mexican economy oil

revenues are critical to public spending
Villarreal 12 M. Angeles Villarreal, Specialist in International Trade and Finance
@ CRS, U.S.-Mexico Economic Relations: Trends, Issues, and Implications,
Congressional Research Service, 8/9/2012,
http://www.fas.org/sgp/crs/row/RL32934.pdf
Mexicos long-term economic recovery and stability partially depend upon
what happens in the oil industry. In 2010, Mexico was the seventh-largest producer of oil in the
world and the third largest in the Western Hemisphere. 39 The Mexican government depends
heavily on oil revenues, which provide 30% to 40% of the governments
fiscal revenues, but oil production in Mexico is declining rapidly . Many
industry experts state that Mexican oil production has peaked and that the
countrys production will continue to decline in the coming years. 40 The
Mexican government has used oil revenues from its state oil company, Ptroleos Mexicanos (Pemex), for
government operating expenses, which has come at the expense of needed reinvestment in the company itself.
Because the government relies so heavily on oil income,

any decline in production has major

fiscal implications . In 2008, the government enacted new legislation that sought to reform the countrys
oil sector, which was nationalized in 1938, 41 and to help increase production capability. The reforms permit Pemex

analysts contend, however, that

the reforms did not go far enough and that they do little to help the
company address its major challenges. 42 Mexicos President-elect Enrique Pea Nieto of the
to create incentive-based service contracts with private companies. Some

centrist Institutional Revolutionary Party (PRI) has vowed to convince his party, which nationalized the industry and
has blocked previous attempts at reforming the energy sector, and the PRI-aligned oil workers union, to allow
further energy reforms to move forward. The narrow margin of Pea Nietos victory and his coalitions apparent
failure to capture a majority in either chamber of the Mexican Congress, however, may make it difficult to reform
the energy sector. Another issue that may block energy reforms from moving forward is the nationalist lefts strong
showing in the July 1, 2012, elections. The leftist coalition led by the Party of the Democratic Revolution (PRD) has
the second-largest bloc in the lower house of the Mexican Congress and remains staunchly opposed to increasing
private involvement in Pemex. 43 Most experts contend that Pemex has only the capacity to produce in shallow
waters and needs to bring in new technologies and know-how through private investment to allow the company to

lack of further
reforms is reportedly keeping Mexico from allowing much-needed foreign
investment for oil exploration. Though the performance-based contracts are expected to increase
production and reserves, Pemex faces serious challenges in finding new, productive wells and also lacks
successfully explore and produce in the deep waters in the Gulf of Mexico. 44 The

11
resources for investment in increasing engineering capacity and
exploration.

C) Economic collapse causes famine

Mahder 8 (Ethiopian Development Website, Addressing the root cause of famine
and poverty in Ethiopia, September 27, 2008,
http://mahder.com/pdf/Addressing_the_root_cause_of_famine_and_poverty_in_Ethio
pia..pdf, AD: 7-6-9)

there is a strong correlation between famine and

economic development or growth. Economic growth leads to development
and reduction in poverty and famine. Real economic growth embracing
and benefiting all the citizens of a country produces safety mechanisms
which are of vital importance in alleviating or avoiding displacements and
live destruction emanating from famine. The suffering and significant loss of lives resulting
from persistent famines which are hitting Ethiopia could not be avoided or even mitigated
owing to the shrinking economy or increasing poverty in the country. On the other hand, one can
It is well established that

can not avoid but face the irony of Ethiopia failing to be self sufficient and feed its population despite possessing all
the potential to do so. Thus a critical examination of the major stumbling block or factor acting as a bottleneck and
preventing the country from eradicating or even coping with famine is necessary.

D) FORTUNATELY PLAN SOLVES IT BOOSTS MEXICOS ECONOMY

Wood 12 (Duncan Wood, 5/20/12 Department of International Affairs, Instituto
Tecnolgico Autnomo de Mxico, Senior Advisor, Mexico Institute Renewable
Energy Initiative, RE-Energizing the Border: Renewable Energy, Green Jobs and
Border Infrastructure Project, Wilson Center,
http://www.wilsoncenter.org/sites/default/files/RE_Energizing_Border_Wood.pdf)
Economic spillover: It is clear that the development of renewable energy projects brings
economic benefits to the areas in which they are located, not merely through the
generation of electricity or the production of fuel, but also through the
spillover effect in terms of employment, infrastructure spending, services,
and the potential for creating industries focused on manufacturing
equipment and components. Renewable energy technologies tend to
create more jobs per unit of energy generated than their conventional
energy counterparts. This is because the RE sector tends to create jobs not
only in the generation of electricity and fuel and in the manufacture of
equipment and parts, but also indirectly in the form of maintenance,
repairs and services. It is estimated that more than three million people are
employed in the RE sector worldwide, and in Mexico the government has suggested that the
sector could employ up to 100, 000 people if it were implemented alongside a complementary industrial policy.3 A
second level of economic benefit stems from the potential for energy cost
savings for local authorities who decide to purchase their electricity from
renewable energy sources. In Mexico, for example, the lower cost of wind energy
in relation to power generated through conventional means by the Comisin Federal
de Electricidad (CFE), has encouraged municipal authorities to purchase wind
energy for public lighting and buildings. These cost savings mean that the
government has the opportunity to use those funds for other public
purposes. If public authorities such as state governments are themselves partners in green energy generation
projects, the resulting profits may be employed as a way of providing subsidies to
the local population. This will help to secure local approval of RE projects. Lastly,
we should point to the significant infrastructure investments that often

12
accompany renewable energy projects. As wind and solar plants are often
located in remote areas, it may be necessary to build roads and bring in
water supplies to make them viable. Of course transmission lines will also be
needed to transport the electrons generated to market. All of this
infrastructure spending is another potential source of employment and
income for local citizens and businesses, but also implies a potential obstacle due to financing
limitations.

13

1AC Solvency

14

1AC
The plan fosters cooperation over critical energy issues to
bolster renewable industry now is critical to ensure Mexican
approval
Wood 13 (Duncan Wood, the Director of the Mexico Institute at the Woodrow
Wilson International Center for Scholars, Growing Potential for U.S.-Mexico Energy
Cooperation, Wilson Center of Mexico Institute, January, 2012,
http://wilsoncenter.org/sites/default/files/wood_energy.pdf)
Looking ahead to the next six years of interaction between governments of Mexico and the United States, there
is the potential for an enormously fruitful relationship in energy affairs.
Much of this depends on two key factors, political will and the internal changes that are underway in Mexicos
energy sector. In the past, political sensitivities concerning U.S. involvement in the Mexican hydrocarbons industry
have limited the extent of collaboration in the oil and gas sectors. This continues to be a cause for concern in any
U.S.-based discussion (from either the public or private sectors) of Mexican energy policy and the potential for

in recent years there has been a relaxation of sensitivity in this

Partly in response to the perceived need for international assistance in
resolving Mexicos multiple energy challenges, and partly as a result of a
productive bilateral institutional relationship between federal energy
agencies, there is now a greater potential for engagement than at any
collaboration, but
area.

time in recent memory.

We can identify three main areas in which bilateral energy cooperation holds

great promise in the short-to medium-term. First, given the importance of the theme for both countries, there is
great potential in the oil and gas industries. This lies in the prospects for investment, infrastructure and technical

we can point to the electricity sector, where the creation of

a more complete cross-border transmission network and working towards
the creation of a market for electric power at the regional level should be
priorities for the two countries. Third, in the area of climate change policy,
existing cooperation on renewable energies and the need for a strategic
dialogue on the question of carbon-emissions policy are two issues can
bring benefits for both partners. Underlying all three of these areas are
broader concerns about regional economic competitiveness and the
consolidation of economic development in Mexico . The first of these concerns derives
collaboration. Second,

from the hugely important comparative advantage that the North American economic region has derived in recent
years from low-cost energy, driven by the shale revolution. In order to maintain this comparative advantage, and to
ensure that the integrated manufacturing production platform in all three countries benefits from the low-cost
energy, the gains of recent years must be consolidated by fully developing Mexicos energy resources. With regards

a number of commentators, analysts and

political figures in Mexico have identified energy reform as a potential
source for driving long-term economic growth and job creation, and the
potential opportunities for foreign firms are considerable . While the United States
to the second concern, economic development,

cannot play an active role in driving the reform process, the implementation of any future reform will benefit from
technical cooperation with the U.S. in areas such as pricing, regulation and industry best practices.

US collaboration and investment is key broadly increases

demand for renewables and enhances energy production and
transmission efficiency
Wood 13 (Duncan Wood, the Director of the Mexico Institute at the Woodrow
Wilson International Center for Scholars, Growing Potential for U.S.-Mexico Energy
Cooperation, Wilson Center of Mexico Institute, January, 2012,
http://wilsoncenter.org/sites/default/files/wood_energy.pdf)

15
Mexicos electricity sector has gone through significant changes over the
past twenty years since the passing of the 1992 Ley de Servicio Publico de Energia Electrica, in which
private electricity generation was permitted under certain circumstances. During that time the private
sector has become responsible for around 30% of installed capacity in the
country, although the Comisin Federal de Electricidad (CFE) remains the dominant player in the market through its

Electricity prices remain high in the country,

particularly for commercial customers, and this is widely seen as a limiting
factor on Mexican business competitiveness. At the same time, although 97% of the
Mexican population is connected to the national grid, this means that almost 5 million Mexicans
still do not have reliable access to electricity. At the present time Mexico is a net exporter
monopoly over transmission and distribution.

of electricity to the United States, with around 600 gigawatt hours (GWh) of power exported from Baja California to

demand for electricity

in Mexico is growing fast: according to SENER, demand grew from 157,204 GWh in 2001 to 200,946
GWh in 2011. Much of that growth in demand has come from the residential
sector, but it is big business that has led the way as demand is tied
directly to economic growth. This suggests that, as Mexicos economy continues
to grow at a rate higher than its NAFTA partners, we should expect the
countrys electricity demand to increase at a similar rate. This projected growth
means that Mexico will either have to add further generating capacity or
increase its electricity imports. Both scenarios present opportunities for the
U.S. In the first, new installed capacity will likely be in the form of combined
cycle natural gas plants, to take advantage of the historically low price of
natural gas due to the shale revolution. As pointed out above, Mexico is
already looking to import more gas from the United States, and new
electricity generating capacity will increase that even further . The second
California in 2010and around 150 GWh of power exported from Texas. However,

scenario would directly benefit the electricity producers, most likely in Texas, which has seen and rapid growth in

In order to get electricity from Texas to Mexico, however, some

major investments must take place in the area of transmission . At the
present time the cross-border transmission infrastructure is highly
capacity in recent years.

limited and talks between the two countries aimed at facilitating new cross-border projects
have achieved little real progress since 2010. Nine cross-border interconnections exist at the time of

writing, with new transmission capacity last added in 2007, with the opening of the Sharyland McAllen-Reynosa
150MW connection. Of course transmission not only affects the prospects for electricity imports into Mexico from
Texas, but also exports from Baja California to California, particularly of electricity from renewable sources such as
wind (see below). Mexico and the United States will need to deepen their cooperation in the area of transmission if
these projects are to be brought to fruition. As noted above, to date the cross-border transmission discussions
between the two countries have not yielded very much of substance, and it should be a priority of both
governments to try to inject the process with more vigor and enthusiasm. In part the slow movement of the talks so
far is a result of the fact that neither side has attached much importance to them; on another level, however, the
differences between the two countries systems has run into cultural barriers. Because the CFE is run as a federal
government agency, rather than as a business, it has been noted that the organization thinks not in terms of
business opportunities, but rather of fulfilling its mission of providing electricity as a public service. This cultural

One
final issue on which the two countries can and should cooperate in the
years to come is that of upgrading Mexicos national electricity grid and
making it a truly Smart grid. As Mexicos economy and electricity
market mature, and as a more market-oriented pricing structure emerges,
the use of smart grid technologies will become of increasing importance to
manage supply issues, and to allow for flexible responses to unexpected
jumps in demand. One issue that the government hopes to solve through smart grid
technology is that of electricity distribution losses , which run as high as 17% at the national level.
obstacle to progress must be overcome, however, if the true potential for electricity trade is to be realized.

At the present time the CFE is only just beginning to install a small number of smart meters in the selected areas of
the country, but in August of 2012 the Comisin Reguladora de Energa (CRE)announced that it has begun
developing a smart grid plan for the country. Early research for the plan was financed in part by a US$405,000 grant

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from the US Trade and Development Agency, and the two countries should continue to cooperate on the
development of the grid, creating significant opportunities for private firms from both sides of the border.

the invasion of Afghanistan.