MEXICO Trends and Developments Contributed by: Bernardo Cortés and Fernando Quesada, Cortés Quesada Abogados, S.C.
• mixed-investment projects in which CFE par- ticipates directly or indirectly in at least 54% of the power plant. The LESE also introduces a specific modality for cogeneration projects, which are granted a dispatch guarantee to the grid. Control and operation of transmission and distribution grids The transmission and distribution of electricity remain strategic activities reserved exclusively to the Mexican State and are entrusted to CFE. Operational control of the NES continues to be assigned to the National Centre of Energy Control (CENACE), which operates as a State- controlled independent system operator. A new concept introduced under the 2024 reform is the “economic load dispatch”, which replaces the former “economic dispatch” model. This mechanism allows CENACE to determine the injection of electricity into the NES by gen- eration companies, as a mechanism to ensure the State’s predominance in the sector. CENACE also continues to be responsible for managing the interconnection processes of power plants and the connection of load centres. Regarding the development of new transmission and distribution infrastructure, the New Law of CFE allows private participants to “associate” with CFE for the installation, extension and/or maintenance of the National Transmission Grid and the General Distribution Grids. Marketing The LESE upholds the principle of State pre- dominance in electricity marketing activities. However, unlike the rules relating to generation, the law does not provide further details on how this predominance will be enforced.
The law designates CFE as the sole and exclu- sive Basic Services Supplier. This marks a departure from the previous legal framework, which allowed other authorised entities to par- ticipate in the provision of basic supply services. Under the new regime, CFE is permitted to enter into Power Purchase Agreements (PPAs) with any generator, using a variety of mechanisms, including competitive tenders. Qualified supply services, intended for large- scale consumers, are preserved under terms largely consistent with the prior legislation. SEN- ER retains authority to define and periodically adjust the minimum demand threshold required for end users to be registered as qualified users. WEM The operation of the WEM is still entrusted to CENACE, which is tasked with establishing the rules for cost registration, the submission of capacity offers, and the representation of assets in the WEM. In addition, the (new) Economic Competition Agency is designated as the authority respon- sible for investigating and sanctioning antitrust practices in the power sector. Activities per- formed by CFE, however, are expressly excluded from economic competition scrutiny. Storage and electromobility The new legal framework includes specific pro- visions on power storage and electromobility matters, granting SENER and the CNE authority to issue the applicable administrative and eco- nomic regulations. Electrical energy storage sys- tems are allowed to supply energy to the NES, provided that the entire production is offered to CENACE.
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