international

The Americas: Mexico

Mexico Electricity Regulatory Partnership:
Navigating Mexico’s Energy Reform

CRE participants discuss smart grid and cybersecurity in Mexico City, Mexico, during an activity in September 2014.

The Energy Sector

Mexico is currently in the midst of a massive overhaul of its energy sector, aiming to improve system performance and strengthen the Mexican economy. The energy reform ends over 75 years of energy nationalization, opening the energy sectors in hydrocarbons and electricity to structural changes and foreign investment. The energy reform also supports the Mexican Government’s goals to promote clean energy generation, specifically a 30% reduction in greenhouse gas emissions by 2020 and 35% clean energy generation by 2024, under the General Law on Climate Change of 2012.

With the passage of Energy Reform in Mexico, the electricity sector moves from a centralized structure to privatization and competition. Structural changes to the electricity sector created an Independent System Operator — the National Center for Energy Control (CENACE) — and granted increased regulatory powers for the Energy Regulatory Commission (CRE).

CRE’s increased responsibilities in regulating electricity generation, transmission and distribution include reviewing tariffs, monitoring the functionality of the wholesale market and ensuring reliability and quality standards are met.

 

Our Work

With support from the United States Agency for International Development (USAID), the Mexico Electricity Regulatory Partnership is uniquely positioned to assist CRE in navigating its new roles under energy reform. NARUC does so by supporting CRE’s expanded electricity sector regulation responsibilities, and enhancing its overall institutional governance and technical capacity.

USAID’s main objectives in Mexico — promoting economic growth, clean energy generation and an environmentally sustainable energy sector — are the foundation of the Mexico Electricity Regulatory Partnership. NARUC leverages over 15 years of international regulatory partnerships using domestic NARUC experts to provide peer-to-peer engagement from the U.S. State Commissions to assist CRE.

 

Selected Results

Tariffs
NARUC experts assisted CRE in developing new tariff instructions for electricity, including documents and methodologies for billing and rate design. CRE previously did not have specific procedures or formulas for billing or rate design.

Public Engagement
NARUC experts assisted CRE in its discussions with CENACE and the utility on matters of reliability and distribution, interconnection and market monitoring.

Clean Energy
NARUC experts collaborated with CRE to create a new timeline for implementing Clean Energy Certificates. This will encourage the energy generation from renewable sources by providing another financial incentive for generators.

At A Glance

Project Dates: 2012-2017 (Closed)

Partners:

Mexican Energy Regulatory Commission

Contact Us About This Project

News

U.S., Mexican Regulators Collaborate Remotely to Support Reform
With USAID support, Mexican regulators received rapid support on key regulations through a remote peer review with NARUC’s network of expert regulators.

Mexican Regulators Build Certificate System To Support Clean Energy
With USAID and NARUC support, Mexican regulators are helping their country reach its clean energy goals through a clean energy certificate program.

Mexican Grid Code Reflects Vision of Stronger, More Reliable System
With USAID and NARUC support, Mexican regulators integrated best practices on reliability and stakeholder involvement into crucial criteria for the country’s electricity grid.

In-Depth Trainings Offer Critical Skills and Capacity to Regulators
With USAID and NARUC support, regulators in emerging economies are building knowledge and expertise through courses on regulatory fundamentals and best practices.

Arizona Regulators Featured in Article about NARUC-USAID Work
Regulators from Arizona are providing expertise and thoughtful support to counterparts in Ukraine, Nigeria and elsewhere through USAID assistance. 

Collaboration Guides Mexican Energy Officials on Path to Reform
With USAID and NARUC support, Mexican officials found a common path on efforts to reform the country's energy sector.