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G.; Møller Mikkelsen, K.; Yongqiang, A.; Sandholt, K. (2013). Market Evolution:

Wholesale Electricity Market Design for 21st Century Power Systems. NREL/TP-6A20Golden, CO: National Renewable Energy Laboratory. Accessed September 2014: www.nrel.gov/docs/fy14osti/57477.pdf.

Denholm, P.; Hand, M. (2011). “Grid Flexibility and Storage Required to Achieve Very

High Penetration of Variable Renewable Electricity.” Energy Policy (39:3); pp. 1817Accessed October 2014:


Holttinen, H.; Tuohy, A.; Milligan, M.; Lannoye, E.; Silva, V.; Muller, S.; and Soder, L.

(2013). “The Flexibility Workout: Managing Variable Resources and Assessing the Need for Power System Modification.” Power and Energy Magazine, IEEE (11:6); pp. 53-62.

Accessed August 2014:

http://ieeexplore.ieee.org/xpl/articleDetails.jsp?tp=&arnumber=6634499&searchWithin% 3D.QT.flexibility+workout.QT.%26queryText%3Dpower+and+energy.

49 Hummon, M.; Denholm, P.; Jorgenson, J.; Palchak, D.; Kirby, B.; Ma, O. (2013).

Fundamental Drivers of the Cost and Price of Operating Reserves. NREL/TP-6A20Golden, CO: National Renewable Energy Laboratory. Accessed September 2014: www.nrel.gov/docs/fy13osti/58491.pdf.

Mai, T.; Drury, E.; Eurek, K.; Bodington, N.; Lopez, A.; Perry, A. (2013). Resource Planning Model: An Integrated Resource Planning and Dispatch Tool for Regional Electric Systems. NREL/TP-6A20-56723. Golden, CO: National Renewable Energy Laboratory. Accessed Jan. 31, 2014: www.nrel.gov/docs/fy13osti/56723.pdf.

Miller, M.; Bird, L.; Cochran, J.; Milligan, M.; Bazilian, M.; Denny, E.; Dillon, J.; Bialek, J.; O'Malley, M.; and Neuhoff, K. (2013). RES-E-NEXT: Next Generation of RES-E Policy Instruments. NREL/TP-6A20-58882. Golden, CO: National Renewable Energy Laboratory. Accessed May 2014: http://iea-retd.org/wp-content/uploads/2013/07/RESE-NEXT_IEA-RETD_2013.pdf.

Porter, K.; Mudd, C.; Fink, S.; Rogers, J.; Bird, L.; Schwartz, L.; Hogan, M.; Lamont, D.;

and Kirby, B. (2012). Meeting Renewable Energy Targets in the West at Least Cost:

The Integration Challenge. Denver, CO: Western Governors' Association. Accessed August 2014: www.westgov.org/policies/doc_download/1602-meeting-renewableenergy-targets-in-the-west-at-least-cost-the-integration-challege.

Short, W.; Sullivan, P.; Mai, T.; Mowers, M.; Uriarte, C.; Blair, N.; Heimiller, D.; Martinez, A. (2011). Regional Energy Deployment System (ReEDS). NREL/TP-6A20-46534.

Golden, CO: National Renewable Energy Laboratory. Accessed September 2014:


Mexico-specific Checklist: Capacity Value

Evaluate capacity value and resource adequacy of future scenarios as a pre screen to the more detailed PCM evaluation. If adequacy criteria are not met, revise scenarios to increase generation or decrease load before detailed PCM proceeds.

Use high temporal and spatial resolution data, if available, to calculate capacity • value. If a high resolution wind resource dataset is not yet available, commercially available lower resolution (and lower-cost) datasets may be used for the purpose of pre-screening.

Mexico-specific Checklist of Recommendations: Production Cost Simulations and Flexibility Assessment Recommendations for Mexico on production cost simulations and flexibility assessment


For initial integration analysis in Mexico, focus on operational rules addressing 1) • sub-hourly UCED, 2) examination of reserve levels, and 3) dynamic reserve procurement. In future integration analyses, Mexico can consider including longer-term operational items, such as enlarging the balancing footprint through increased exchange with adjacent power systems.

50 For initial integration analysis, prioritize 1) incorporating wind forecasting into • UCED, 2) accurate representation of fossil and hydro fleet characteristics, and 3) evaluation of wind and solar power curtailment levels when generator flexibility is fully utilized.

Begin the UCED analysis without considering transmission power flow • constraints. Evaluate the results against known constraints to determine if iteration back to limit delivery of ancillary services in the UCED modeling is needed.

If initial or future integration evaluations indicate excessive curtailment (due to • operational limits, rather than abnormal disturbance response needs) within the system, iterate to assess additional operational and physical sources of flexibility beyond those already suggested. Voluntary demand control programs, incentivizing future generation resources for flexibility, tapping hydro or gas storage opportunities, or adding electrical storage technologies can be examined once first round analyses are completed.

Perform initial models for unit commitment and dispatch on a platform that • accommodates sub-hourly time steps. Standardized tools from commercial vendors will readily capture the appropriate generator characteristics and UCED processes, but data development will be required. Existing tools in use in Mexico may be customizable to accommodate this type of analysis. We understand that the Hydrothermal Coordination model is currently being adapted to accommodate sub-hourly time steps and associated operational practices. Data for demand and generation forecasts may also require modification.

Begin dataset development (critically, for wind resource time series and • conventional generator capabilities) and scenario development as soon as feasible to enable timely implementation of the more detailed UCED modeling.

References Bakke, J.; Zhou, Z.; and Mudgal, S. (undated). Manitoba Hydro Wind Synergy Study.

Midcontinent Independent System Operator. Accessed July 2014:

http://energyexemplar.com/wpcontent/uploads/publications/Manitoba%20Hydro%20Wind%20Synergy%20Study%20F inal%20Report.pdf.

California Independent System Operator Corporation. (2010). Integration of Renewable Resources: Operational Requirements and Generation Fleet Capacity at 20% RPS.

Accessed September 2014: http://energyexemplar.com/wpcontent/uploads/publications/CAISO_Study_Using_PLEXOS.pdf.

“Projects: Other Selected Projects.” (undated). Energy+Environmental Economics (E3).

Accessed October 2014:


Lannoye, E.; Flynn, D.; O’Malley, M. (2012). “Evaluation of Power System Flexibility.”

IEEE Transactions on Power Systems (27:2); pp. 922-931. Accessed October 2014:


51 Mexico-specific Checklist of Recommendations: Analyzing and Presenting Results Recommendations for Mexico on analyzing and presenting results of grid integration

studies include:

Compare different alternative energy future scenarios from economic, reliability, • security, and environmental perspectives and report key assumptions underlying metrics such as costs, generation mix, emission rates, operational practices, and market structures.

Present the results of sensitivity analyses to address and communicate • limitations of integration studies resulting from the definition of assumptions.

Involve Mexican grid experts and stakeholders, including CFE, IIE, CENACE, • CRE, and SENER, in developing and validating inputs, analyses, and results of integration studies. A technical review committee may be an appropriate mechanism for such engagement. Review and adapt as appropriate the UVIG’s “Principles for TRC Involvement” to the entire process of grid integration assessment in Mexico.

Seek guidance as needed from the international expert community (e.g., IEA, • NREL, UVIG staff) to provide input and feedback on Mexico’s ongoing grid integration analysis efforts.

52 Appendix V: USAID RUTAS Program Energy Sector Labor Market Assessment Nuevo León saw a surge of investment in the energy sector -- from 0 to 35% of direct foreign investment in just one year -- following the energy reform. Due to the importance of these investments, the current administration has created a new undersecretary of energy, which is working with newly arrived energy firms (Sanyo, Next Energy, Baker Hughes, GE Energy, Schneider Electric, Weatherford, Schlumberger) to form a cluster (anticipated in fall of 2015). RUTAS is developing a specialized labor market assessment for the energy sector in Nuevo León in order to understand 1) how many jobs will be created over time, 2) what businesses will be hiring, and 3) what particular skills they will be looking for. To this end, RUTAS is consulting with the California Energy Commission after having conducted an initial labor market assessment consulting with the Secretary of Energy, the Mexican American Chamber, the British Council, the Financial Times, Bloomberg, the Autonomous University of Nuevo León, SENER, SEDECO NL, the Center for Energy Workforce Development and Texas A&M.

While information is still scarce regarding the quantitative and qualitative demand,

RUTAS has begun to outline some initial findings:

Nationally, 80% (108,000) of the direct employment opportunities related to • energy reform will be for technicians, while only 20% will be for graduates from higher education.

Given the fall in the price of oil, as well as the prolonged timeline of infrastructure • development related to extraction, Nuevo León will not see significant job growth in the extractive sub-sector until at least 2024.

While the state should expect an initial surge in infrastructure related jobs, these • will likely disappear after the requisite infrastructure is installed.

Similarly, depending on whether pipelines are built or not, the state could face a • surge in logistics jobs that either drops off as pipelines come online or continues a steady rise.

Finally, RUTAS anticipates accelerated growth in the renewable energy • subsector, both among local and foreign firms. Given a prior reform that allowed companies to produce their own electricity, some private companies (e.g.

Ternium and Cementos Mexicanos, or CEMEX) have a head start on energy production. In addition, new rules included in the energy reform will incentivize the development of clean energy sources (solar, wind, mini-hydraulic power, efficient cogeneration, nuclear and biomass). Business and industrial consumers will be obligated to purchase a percentage of their energy from clean energy providers. The most informed estimates put the percentage required in 2015 to fall somewhere between 10 and 25%, in order to reach 35% by 2024.

Curriculum Alignment Once RUTAS confirms how many jobs will be created in which parts of the energy sector, the program will work with energy companies to define the critical skills they will hire for. Traditionally, the conversation between schools and industry was conducted on a superficial level, comparing job descriptions to graduate profiles. To ensure that 53 businesses and schools are comparing apples to apples, RUTAS facilitates the conversation at a deeper level, comparing employer-defined skills to learning objectives in the existing curriculum. RUTAS’ primary partner in our curriculum alignment work is CONALEP, The National College of Technical Professional Education, which alone among the technical upper secondary systems has sufficient curricular autonomy to add up to 270 hours of new learning objectives to any of its relevant degree programs.

CONALEP offers combined college prep and vocational degree programs. Each threeyear degree program dedicates 1,530 hours to a common core academic and socioemotional skills curriculum (heavily weighted towards the first year and a half), 1,710 hours to vocational courses (beginning in the second semester and increasing in intensity through semester six), 270 hours to contextualized college prep courses related to the degree (90 hours in semesters four, five and six), and 270 hours to a technical specialty (90 hours in semesters four, five and six).

For example, working with CONALEP in Chihuahua, in just six months, RUTAS was able to add two technical specialties to the Industrial Electro-Mechanics degree program, which boosted the program’s relevant hours to that state’s growing aerospace industry from 700 hours with industry-critical learning objectives to 970.

Bi-national Collaboration Because Mexico´s private energy sector is in the early stages of development, RUTAS is leveraging its support from USAID to access industry-defined skills and competency standards, curriculum and business intelligence from across the border. Comparing the Center for Energy Workforce Development´s (CEWD) Competency Model2 to the Mexican common core curriculum and industrial degree programs, RUTAS found a broad match between curricular learning objectives and CEWD´s competency standards across the first three fundamental competency areas defined by the energy sector in the US: 1) personal effectiveness, 2) academic competencies, and 3) workforce competencies. In addition, among a subset of industrial technical degree programs within the CONALEP system, RUTAS found comparable learning objectives to CEWD´s industry-wide technical competencies, in electrical generation, transmission, and distribution.


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