MEXICO Trends and Developments Contributed by: Bernardo Cortés and Fernando Quesada, Cortés Quesada Abogados, S.C.
It is important to note that, before the enactment of the LESE and the LCNE, the former regulator (the Energy Regulatory Commission) issued a set of rules on energy storage systems (SAE, for their Spanish acronym) within the WEM. These rules defined five distinct SAE categories based on their purpose. • SAE-CE (associated with a power station) requires a generation permit from the CNE and is limited to power stations with “intermit- tent” production sources. The energy used to charge the SAE-CE must originate from the associate power station, and its charge and discharge operations must follow instructions from CENACE. • SAE-CC (associated with a load centre) does not require a generation permit but must be represented in the WEM either by a supplier or independently. The stored energy is used to meet the demand of the corresponding load centre. • SAE-AA (associated with isolated supply infrastructure) requires a generation permit and must comply with the same rules (and restrictions) as isolated supply power sta- tions, including the concept of “self needs”. • Non-Associated SAEs (not linked to any generation or consumption infrastructure) are treated as firm power stations for regulatory purposes and participation in the Balancing Capacity Market, while being exempt from obligations related to Clean Energy Certifi- cates. • SAE-GEs (associated with an exempt pro- ducer) are regulated according to the rules applicable to distributed generation. Clean energy obligations The LESE continues to recognise Clean Ener- gy Certificates (CELs) as the primary tool to support Mexico’s energy transition. However,
unlike before, CELs are now awarded regard- less of the ownership or commercial operation date of the applicable Power Stations. SENER is responsible for setting the annual CEL acquisi- tion requirements, which can be traded within the WEM. Under the new LPTE, SENER will also estab- lish the criteria to certify clean energy produc- ers and grant CELs. These criteria will take into account the actual level of “real” emissions of each technology and permit holder, as well as the use of back-up and ancillary services from fossil-fuelled energy for the operation of clean energy sources. In addition, the CNE is expected to create a new CEL registry to record ownership of CELs and the relevant transfers, and to track related trans- actions. CFE As a result of the constitutional reforms, the New Law of CFE lays the foundations for the transfor- mation of CFE into a single, consolidated State- owned company. The key features of this new legal regime include the following. • Corporate integration: CFE is reorganised into a single entity, eliminating its former structure of State-productive company and subsidiar- ies. • Special legal regime: CFE will operate under a distinct legal framework governing areas such as affiliate companies, procurement processes, asset management, administrative responsibilities, and budgetary and account- ing treatment. • Exclusion from antitrust oversight: CFE’s activities are expressly excluded from being classified as monopolistic practices (so, in
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