New wholesale electricity market to stimulate development in Mexico
The new wholesale electricity market scheme and clean energy certificate trading scheme to be implemented this month will stimulate renewable energy development in Mexico.
The new wholesale electricity market is expected to be implemented in the second half of January, will stimulate energy development in Mexico, says the head of the Sener, Pedro Joaquin Coldwell.
According to the Secretary of Energy, the recently approved Energy Transition Act contains targets to be met in clean energy and energy efficiency and promotion mechanisms.
The new mechanism for trading clean energy certificates is promoting clean energy projects and diversify energy sources, with minimum
percentage requirements that market participants must either sell or acquire, through public tenders or direct sales.
“The minimum number certificates that each market participant must buy will be tied to the total electricity consumption at load points.
Minimum purchase requirements for clean energy certificates will be set the first quarter of each year for the following three-year period. Clean energy certificates will be issued by the CRE.”
He stressed that the geothermal field mapping to the Federal Electricity Commission (CFE), gives certainty to plan its expansion and future plants; and on the other hand, the private sector will mark the availability of the fields in which you can invest.
A great overview can be found in the document “A New Power Market in Mexico“, by law firm Chadbourne & Parke LLP.