• Beverage:  Mexican beverage giant and retailer FEMSA announced plans for US$750 worth of investment this year.  The lion’s share of the funds will go toward upgrades and expansions of bottling plants, while the remainder will support the company’s Oxxo chain of convenience stores.
• Automotive:  Chinese autoparts maker Minth opened a manufacturing plant in the northern state of Aguascalientes.  The plant, representing a total investment of US$16 million, is planned to supply molding and interior components to Nissan, Ford, Chrysler and Fiat plants in Mexico.
• Mining: Mining companies operating in Mexico will invest a combined US$13.8 billion through 2012, according to the Mexican Mining Chamber (Camimex).  The chamber projected that expansions and upgrades of operations in mining zones will contribute toward improvements in roads, electrification, potable water and other basic infrastructure in the areas.
• Automotive: Industry sources reported that Chrysler and Fiat plan to jointly produce a new model of SUV at the companies’ plant in Toluca, State of Mexico.  The model would join two other new compact models reported planned by Fiat for production at the Toluca plant.
• Automotive: German autoparts manufacturer Continental projected it will invest US$10 – 12 million this year, principally in equipment and software.  Continental is anticipating sales growth of 20% in 2010 as the automotive industry recovers from last year’s downturn.
• Electronics: Chipmaker Intel announced investment plans in the area of US$200 million over the next three years in support of its Guadalajara operations.  Planned projects include expansion of the company’s Design Center, the creation of a children’s technology museum and a center to promote relationships with small and medium sized Mexican firms.
• Renewable energy: The Inter-American Development Bank announced financing for four new wind farms for the generation of electricity to begun in 2012.  Total investment in the projects is projected at US$5 billion.

Be the first on your block

Mexico’s progress in making greater use of renewable energy sources has long been shackled by regulatory restrictions on independent energy generation by private enterprises and citizens.  This, of course, has much to do with the histrionics of political sectors that oppose energy reform for reasons wholly unrelated to energy, but that’s another topic.  It’s a fundamental problem of, as we say in Mexico, “ni picha, ni cacha, ni deja batear.”  The resources of the Federal Electricity Commission (CFE) are far too stretched to finance a wide range of innovative alternative generation projects, particularly at the micro level, but regulation has largely prevented anyone else from generating electricity, even for their own consumption.  Some furtive steps toward modernization of the regulatory framework fortunately have been taken in recent years.  One such step, introduced almost surreptitiously in 2007, was the Interconnection Contract for Small-Scale Solar Energy Sources, which permitted private generation of up to 10kw for residential use and 30kw for general low tension use.  Although the practical impact of this regulatory innovation was virtually nonexistent, it is significant nonetheless in that it represents Mexico’s first toe-dip in the waters of net metering for private electricity generation.  Now, however, the government has taken another important step forward toward clearing the way for wider use of net metering for private electricity generation.

The Official Gazette (Diario Oficial de la Federación) published on April 8 a new Interconnection Contract for Renewable Energy Sources following its submission by the Energy Regulatory Commission (CRE).  The new contract, which supplants the Interconnection Contract for Small-Scale Solar Energy Sources, represents two important advances: 1) it expands the parameters of allowable independent electricity generation by allowing residential users and small businesses to produce higher volumes of electricity than under the previous net-metering mechanism; and 2) it allows for net-metered independent generation using “renewable sources” of energy rather than limiting the scheme to small scale solar generation.  The new contract also details the methods and procedure for billing and crediting deficits or surpluses once consumption and generation are accounted for.

Expanding the permissible generation methods to include wind, hydro, tidal and other alternative energy sources removes an important constraint from non-governmental energy development.  The step also should help to raise awareness of opportunities for net metering and independent power generation in general in the country, which heretofore has been low, to say the least.   A high profile, friendly promotion campaign to spread awareness and demystify independent generation would be welcome, but we’re not asking for miracles.  For now, the efforts of environmental groups, specialized equipment dealers and early adopters will have to suffice.  But at least we’re moving forward.

For anyone interested in examining the new contract, the details are published here.

• Automotive:  Nissan and Volkswagen have announced plans to begin production on new models in Mexico this year, expanding current production.  Nissan will build a new compact model at its Aguascalientes plant, in addition to adding production of its new Micra model also at the Aguascalientes location.  Volkswagen will launch production of a mid-size sedan as well as new models of the Beetle and Jetta at its Puebla facility.
• Electronics: Electronics industry leaders Samina-SCI and Hewlett Packard have announced plans to expand operations this year in Jalisco state, site of Mexico’s leading electronics cluster.  Sanmina projects investment of US$10 million in new machinery and equipment for manufacturing, and Hewlett Packard is investing US$5 million in infrastructure upgrades to expand staff at its Center of Excellence in Guadalajara.
• Manufacturing: Danish cleaning equipment manufacturer Nilfisk opened a US$10 million facility in the central state of Queretaro.  The new plant will produce industrial cleaning machines.
• Airports: Airport operator Grupo Aeroportuario del Pacifico announced planned investment of approximately US$42 million for this year in infrastructure upgrades.  Of the group’s 12 airports in Mexico, those at Guadalajara and Los Cabos are slated to receive the largest share of the upgrade investment.
• Electrics: French electric equipment and process control component manufacturer Schneider Electric inaugurated a new Technology Innovation Center in the north eastern industrial city of Monterrey.  The new center, which will simulate various applications for Schneider equipment such as industrial automation, critical power and energy efficiency, joins the company’s existing facilities in Monterrey and Mexico City.
• Railroad: Mexico’s cargo railroad operators have announced investment plans totaling over US$325 million for 2010.  Operators such as Kansas City Southern de Mexico, Ferromex, Ferrosur, Ferrovalle and Ferroistmo plan to boost spending this year in areas such as maintenance, infrastructure development and expansion, urban facilities and new technology, among others.
• Automotive: Ford de Mexico announced joint investment together with its suppliers of US$3.1 billion to produce the new model Fiesta at Ford’s Cuautitlan plant outside Mexico City.  Production of the new model is slated to begin sometime around mid-2010.
• Renewable energy: The Mexican government’s Shared Risk Fund (Firco) plans an aggressive program of rural renewable energy infrastructure installation to be financed with support from the World Bank and the Global Environment Fund.  The Sustainable Rural Development Program includes plans to acquire and install 500 thermal solar systems, 300 biodigesters and 100 photovoltaic energy systems, in addition to carrying out 180 analyses of agricultural energy efficiency by 2012.