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

Activities

Tariff Methodologies Externship
March 1 - 2, 2017

Technical Workshop on Advanced Smart Grid
October 18 - 20, 2016

Study Tour on Grid Code
July 18 - 20, 2016

Job Shadow on Market Monitoring
July 11 - 15, 2016

Technical Workshop on Advanced Market Monitoring
May 18 - 20, 2016

Externship on Renewable Energy Certificates
May 9 - 13, 2016

Technical Workshop on Regulatory Accounting
April 13 - 15, 2016

Technical Workshop on Grid Expansion
February 3 - 4, 2016

Remote Peer Review on Retail Electricity Supply and Transmission and Distribution
November 2015

Technical Workshop on Market Monitoring
August 18 - 20, 2015

Technical Workshop on Interconnection
August 12 - 14, 2015

NARUC Rate School
May 11 - 15, 2015

Job Shadow on Best Practices and Approaches in Implementing Clean Energy Certificates
Spring 2015

Workshop on Best Practices and Approaches in Implementing Clean Energy Certificates
January 21 - 23, 2015

Workshop on Best Practices and Approaches in Reliability and Quality of Power
October 8 - 9, 2014

Workshop on Best Practices and Approaches in Implementing and Working with Smart Grids
September 23 - 24, 2014

Technical Workshop Best Practices and Approaches in Setting Regulated Tariffs
July 8 - 10, 2014

Partnership Exchange on Renewable Energy Regulatory Frameworks
February 17 - 21, 2014

Facilitated Dialogue on Market Restructuring & Renewable Energy
October 14 - 16, 2013

Facilitated Dialogue on Market Restructuring & Renewable Energy
June 10 - 12, 2013

Peer Review on Renewable Auction Mechanism
August 20 - 24, 2012

Stakeholder Forum - Mexico National Forum on Renewable Energy Regulation: An Approach to Auctions
March 6 - 7, 2012