Mexican energy reforms to benefit solar

Share

On August 11th, Mexican President Enrique Peña Nieto signed into law landmark energy reform legislation. While media coverage focused on the opening of the nation’s oil and gas sector to foreign companies eighty years after nationalization, the legislation also included a number of significant changes to the electricity sector.

Secondary legislation in the package includes a new independent role for grid operator CENACE, requirements to procure renewable energy, enables companies to directly sign electricity contracts with renewable energy generators, and mandates the creation of a system of renewable energy certificates.

“Overall it’s going to be a positive thing for renewables energy generally, and for solar in particular,” says GTM Research Solar Analyst Adam James. “One of the main reasons that is the case is that generation will now be procured on a competitive basis. It’s going to be a liberalized market where solar developers can come in as independent power producers and develop projects.”

Additionally, there is language in the law that allows for competition between clean energy sources in different geographic locations at the lowest cost. James says that while the exact form of that will be determined by regulatory agencies, he expects the creation of a reverse auction system.

Share

Related content

Elsewhere on pv magazine...

Leave a Reply

Please be mindful of our community standards.

Your email address will not be published. Required fields are marked *

By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.

Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.

You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.

Further information on data privacy can be found in our Data Protection Policy.