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The major use of solar energy in Mexico today appears to be for water heating. There are currently about 50 manufacturers, and in 1999 35,000m2 of water heating panels were installed (Conae2002b; ANES 2001). Programs to bring solar PV electricity to remote regions that are inaccessible to the grid are being implemented. It is estimated that five million people live in areas without access to grid electricity. Approximately 35,000 systems of 50–75 watts have been installed to date. It is interesting that these systems are used mostly to provide power to micro enterprises such as sewing and woodworking, thereby significantly improving the rural economy. By 1999, 12.9 MW of PV systems had been installed in Mexico (Conae2002c; ANES 2001). Sandia National Laboratory in the US is working to bring additional off-grid photovoltaic electricity to Mexico. There are already a significant number of solar panel manufacturers in Mexico, and because of the successful maquiladoras manufacturing system, there is the potential for Mexico to expand this effort to become a major manufacturer of both solar thermal and PV systems. The lower labor costs and large amount of labor required per unit could provide Mexico with a significant competitive advantage. Working in close cooperation with the major manufacturers of these technologies in the US and using the opportunities provided by NAFTA could prove highly beneficial to both countries and for the renewable energy industry. Solar technology could be manufactured both for the domestic market and for export to Europe, Asia, Africa and the rest of Latin America. The United States The United States relies heavily upon fossil fuels for its energy services that account for 87 percent of total consumption. The United States is the second-largest producer of oil in the world, but because of its extensive fleet of inefficient vehicles,for more than a decade it has been forced to import more than half of the petroleum it uses (WRI 2000). In 2001, the US consumed an estimated 126 billion gallons of gasoline and 38 billion gallons of diesel fuel in the transport sector (EIA 2002). Similarly, it is one of only a few countries that relies on coal for more than half of its electric power generation. At the same time, it is second only to Canada in large-scale hydropower, which accounts for 10 percent of US electricity generation (WRI 2000). The largest source of renewable energy after large-scale hydropower in the United States is biomass and municipal solid waste. Together, they generate approximately three percent of US energy and, with landfill methane, provide fuel for about one per cent of US electricity production (WRI 2000; EIA 2002). The pulp and paper industry now meets more than 55 percent of its energy requirements using biomass fuel derived from forestry wastes (Jorling 2002). There is also a substantial ethanol motor-fuels industry that is derived primarily from the fermentation of cornstarch and sugars. In 2001, ethanol in gasoline amounted to approximately one billion gallons or about 0.8 percent of total gasoline production. Ethanol is blended at a level of 10 percent with gasoline. An additional three billion gallons are also used to produce an oxygen-rich additive for reformulated gasoline to reduce air pollution during combustion (EIA 2002). The capture of methane from landfills for use in small turbines for the production of electricity is a small, but growing use of biomass waste. 4PDF Image | Assessing Barriers and Opportunities for Renewable Energy in North America
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