Innovative Financial Mechanism to Implement Energy Efficiency Projects in Mexico

This report provides a summary of Energy Sector Management Assistance Program (ESMAP) supported activities in Mexico focused on the creation of a pooled financing program for multiple energy efficiency projects through a single debt instrument. The report is organized as eight chapters. Chapter one provides additional details regarding the ownership, structure and operation of an special purpose entity (SPE); it discusses the flexibility of this structure and how it can serve a pool of private or public sector projects. Chapter two provides an overview of the Mexican energy sector with a focus on the electricity supply, demand and pricing. Chapter three reviews the market potential for energy efficiency investments and provides comparative data on Mexico's energy prices and costs of capital in other countries where the energy efficiency and energy services company (ESCO) market is active. Chapter four reviews the current financial market conditions in Mexico, and the restrictive nature of commercial lending. Chapter five identifies the market, institutional and financial barriers to implementation of energy efficiency and ESCO projects in Mexico with a focus on financial issues. Chapter six provides an overview of the pilot SPE structures under development for the pool financing of multiple projects. A separate SPE is being created for public and private projects. Chapter seven reviews the current status of each SPE initiative, and takes a look into the future with a discussion of next steps. Chapter eight provides a summary of lessons learned from this project, and their application to future efforts in this area.

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2009-06
Subjects:	ANNUAL GROWTH RATE, APPROACH, AVAILABILITY, AVERAGE PRICE, BALANCE, BALANCE SHEET, BANK FINANCING, BANKRUPTCY, BARRIERS TO ENERGY EFFICIENCY, BENEFICIARIES, BENEFICIARY, BOILERS, CAPITAL INVESTMENTS, CAPITALIZATION, CARBON DIOXIDE, CLEAN ENERGY, CLIMATE, CLIMATE CHANGE, COAL, COAL DEMAND, COGENERATION, COLLATERAL, COLLATERAL REQUIREMENTS, COMMERCIAL BANK, COMMERCIAL BANK LENDING, COMMERCIAL BANKS, CONFLICTS OF INTEREST, CONTRACTUAL OBLIGATIONS, COST OF ELECTRICITY, CREDIT DECISION, CREDIT ENHANCEMENT, CREDIT ENHANCEMENTS, CREDIT RATING, CREDITORS, CREDITWORTHINESS, CRUDE OIL, CRUDE OIL PRODUCTION, CURRENCY, CURRENCY RISK, DEBT, DEBT FINANCING, DEBT INSTRUMENT, DEBT SERVICE, DEBT SERVICE PAYMENTS, DEMAND FOR ENERGY, DEMAND FOR NEW GENERATING CAPACITY, DEPOSITS, DEVELOPMENT BANK, DIESEL, DUE DILIGENCE, ECONOMIC BENEFITS, ECONOMIC GROWTH, ELECTRIC POWER, ELECTRICITY, ELECTRICITY BILLS, ELECTRICITY CONSUMPTION, ELECTRICITY DEMAND, ELECTRICITY GENERATING, ELECTRICITY GENERATION, ELECTRICITY GENERATION CAPACITY, ELECTRICITY PRICES, ELECTRICITY SECTOR, ELECTRICITY SUPPLY, ELECTRICITY SYSTEM, ELECTRICITY TARIFF, ELECTRICITY TARIFFS, EMISSION, EMISSION REDUCTION, ENERGY CONSERVATION, ENERGY CONSUMPTION, ENERGY COSTS, ENERGY DEMAND, ENERGY EFFICIENCY, ENERGY EFFICIENCY INVESTMENTS, ENERGY INFORMATION ADMINISTRATION, ENERGY MARKET, ENERGY PLANNERS, ENERGY PRICE, ENERGY PRICES, ENERGY PRODUCTION, ENERGY RESOURCES, ENERGY SAVINGS, ENERGY SECURITY, ENERGY SUPPLY, ENERGY USAGE, ENERGY USE, EQUIPMENT, EQUITY FUND, EQUITY FUNDS, EQUITY INVESTMENT, EQUITY INVESTMENTS, EXPENDITURE, FEEDSTOCK, FINANCIAL ASSETS, FINANCIAL BARRIERS, FINANCIAL INFORMATION, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL MARKET, FINANCIAL MECHANISM, FINANCIAL MECHANISMS, FINANCIAL PLAN, FINANCIAL SERVICES, FINANCIAL STRUCTURE, FINANCIAL STRUCTURES, FLUORESCENT LAMPS, FOREIGN INVESTMENTS, FOREIGN INVESTORS, FREE TRADE, FUEL, FUEL OIL, FUELS, FUND MANAGERS, GAS, GASOLINE, GENERATING CAPACITY, GENERATION, GENERATION CAPACITY, GROSS DOMESTIC PRODUCT, GUARANTEE FEES, HEAT, HYDROCARBONS, IMPORTS, INCOME, INDEBTEDNESS, INSTITUTIONAL BARRIERS, INSURANCE, INSURANCE COMPANIES, INSURANCE POLICIES, INSURANCE POLICY, INTEREST RATE, INTEREST RATES, INTERNATIONAL BANK, INTERNATIONAL DEVELOPMENT, INTERNATIONAL LENDING, INVESTMENTS IN ENERGY, INVESTMENTS IN ENERGY EFFICIENCY, LANDFILL, LEGAL AGREEMENTS, LENDER, LENDERS, LIMITED LIABILITY, LINES OF CREDIT, LIQUIDATION, LIQUIDITY, LOAN, LOAN AGREEMENT, LOAN AGREEMENTS, LOAN APPLICATION, LOAN PORTFOLIO, LOAN PROCEEDS, LOAN TERMS, LOCAL BANKS, LOCAL FINANCIAL INSTITUTIONS, LOCAL GOVERNMENT, LOCAL LENDERS, LONG-TERM FINANCING, MARKET BARRIERS, MARKET CONDITIONS, MARKET EFFICIENCY, METHANE, METHANE RECOVERY, MOTOR GASOLINE, NATURAL GAS, NATURAL GAS DEMAND, NATURAL GAS INDUSTRIES, NATURAL GAS PRODUCTION, NOTARY, NOTARY PUBLIC, NUCLEAR POWER, OIL, OIL COMPANY, OIL DEMAND, OIL EXPORTS, OIL PRICES, PERSONAL PROPERTY, PETROLEUM, PETROLEUM GAS, PETROLEUM PROCESSING, PILOT PROJECTS, PIPELINE, PLEDGE AGREEMENT, PORTFOLIO, POWER, POWER PRODUCER, POWER PRODUCERS, PRICE SPIKES, PRIMARY ENERGY, PRIMARY ENERGY SUPPLY, PRIVATE INVESTORS, PUBLIC REGISTRY, RATES OF INTEREST, RATES OF RETURN, REFINED PRODUCTS, REGULATORY FRAMEWORK, RENEWABLE ENERGY, RESERVE, RESERVE FUND, RESERVES, RESIDUAL FUEL, RESIDUAL FUEL OIL, RETURNS, RISK DIVERSIFICATION, RISK PROFILE, SECURITY INTERESTS, SHORT-TERM INTEREST RATE, SOURCE OF ENERGY, SUPPLY OF ELECTRICITY, TAX, THERMAL CAPACITY, TOTAL COST, TRANSACTION, TRANSACTION COSTS, TRANSFER PAYMENTS, TRANSITION ECONOMIES, TRANSMISSION CAPACITY, TRANSMISSION INFRASTRUCTURE, TRANSPARENCY, TREASURY, TRUST DEED, TRUST FUND, TRUST INDENTURE, TRUSTEE, TRUSTEES, UTILITY PROGRAMS, UTILIZATION OF ENERGY, VEHICLES, VOLTAGE,
Online Access:	http://documents.worldbank.org/curated/en/2009/06/11495853/innovative-financial-mechanism-implement-energy-efficiency-projects-mexico https://hdl.handle.net/10986/17534
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