Mexico Energy Insights
More than 20,000 readers each month turn to MEP for clear, timely analysis of Mexico’s electricity market, energy procurement, facility performance and regulation.
The natural gas industry in Mexico
Mexico covers most of its natural gas demand with imports, and the constraint industrial buyers feel is transport capacity rather than supply. This brief sets out who allocates that capacity, how CRE's wholesale price...
An overview of virtual PPAs
A virtual power purchase agreement is a contract for differences settled in cash, not a supply contract, so it changes no metering and creates no asset to pay back. In Mexico the terms that...
Frequently asked questions about PPAs
A facility can buy power under a PPA in Mexico only once it clears 1 MW of demand and CRE enters it in the Registro de Usuarios Calificados. These answers cover who is licensed...
Solar power enjoys strong fundamentals
CENACE canceled Mexico's fourth long-term auction on 1 February 2019, closing the channel that produced the country's cheapest solar contracts. What is left for an industrial buyer is bilateral: a power purchase agreement, or...
Renewable energy project execution
With the fourth long-term auction canceled in February 2019, an industrial buyer signing a renewable PPA in Mexico takes construction and delivery-date risk directly. What the third auction's USD 20.57 per MWh plus one...
Reliance on US natural gas poses risks
Imports met 54.7% of Mexican natural gas consumption in 2016 and most of that gas crossed the border from Texas. This brief looks at what that concentration means for an industrial facility's supply risk,...
Energy efficiency solutions in Mexico
CONUEE's November 2018 criteria define large energy users at 45 GWh a year. A look at how Mexico's energy efficiency framework, FIDE financing and CFE tariff classes decide whether an industrial retrofit pays.
PPAs vs wholesale spot market
CENACE put the average day-ahead price across Mexico's national grid at 1,319.24 MXN per MWh in the week of 18 to 24 November 2018, with nodal prices in that same week running from negative...
Why industrial buyers cannot contract CFE geothermal power
Mexico had 936.2 MWe of installed geothermal capacity in late 2018, and CFE held five of the six exploitation concessions. For an industrial buyer, that meant the one clean technology matching a continuous load...
Mexico’s electricity market
Six categories of Participante del Mercado are registered in Mexico's wholesale electricity market, and an industrial plant can sign a supply contract with only two of them. This is a map of who does...
Financing renewable energy projects
Mexico's statutory target is 35% clean energy by 2024 under the Ley de Transición Energética, and clean is broader than renewable. What that distinction, the CEL obligation and the Article 34 tax deduction meant...
Oil and gas conference in Oslo and Aberdeen
Mexico Energy Partners co-sponsored the 2018 NovaOil oil and gas events in Oslo, Norway and Aberdeen, Scotland. The reforms discussed there changed how Mexican industrial sites buy and transport natural gas.
Transmission and distribution infrastructure
SENER's interconnection manual of February 2018 set a defined but long procedure for connecting an industrial load center to Mexico's transmission or distribution network. For a plant being sited or expanded, grid access rather...