The price of electricity and fuels directly affects the competitiveness of energy-intensive industries. The expansion of the Mexican electric power sector is planned via natural gas combined cycle (NGCC) plants. This leaves the power sector more susceptible to the behavior of this particular fuel. In recent years, the price of natural gas showed high values and volatility. It would be wise to consider alternatives in order to have a reliable supply of energy. The integrated gasification combined cycle (IGCC) technology presents an opportunity to diversify the installed capacity, its main disadvantage compared to NGCC is higher CO2 emissions. Self-supply has been able to secure the electric power supply. However, in some cases it has not been successful at providing electric power at a lower rate than CFE.
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Llamas et al. (2005) studied this question.
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