New restrictions to investment in renewable energies
15 May 2020
On April 29, 2020, in response to the COVID-19 pandemic, Mexico's National Center for the Control of Energy (Centro Nacional de Control de Energía, or “CENACE”) issued a Resolution to guarantee the Efficiency, Quality, Reliability, Continuity and Security of the National Electric System (“CENACE Resolution”). In addition, on May 15, 2020, Mexico’s Minister for Energy (Secretaría de Energía, or “SENER”) published a Resolution establishing the “Policy of Reliability Security Continuity and Quality of the National Electric System” (“SENER Resolution”).
The operative part of the CENACE Resolution declares that, as of May 3, 2020: (i) all pre-operative testing is suspended for intermittent electricity generation facilities (that is, solar and wind farms), and (ii) preferential access to the grid will be granted to non-intermittent (conventional) electricity generation facilities. The effect of these measures is that:
1. wind and solar farms which have not yet completed their pre-operative testing will not be able to sell the electricity they generate through the National Electric System (Sistema Eléctrico Nacional, or “SEN”); and
2. CENACE has discretion to limit the extent to which any electricity generation facility can send its electricity to the SEN if, according to CENACE, it could put the stability of the SEN at risk (intermittent electricity generation facilities would be the most affected by this measure).
The CENACE Resolution does not provide for an end date for the measures. Nor does it state that the measures will automatically cease to have effect when Mexico’s declaration of sanitary emergency due to the COVID-19 pandemic is lifted.
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Treatment and operation (Operational conditions)
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Industry:
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Manufacturing (Other manufacturing)
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Services (Electricity, gas, steam and air conditioning supply)
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