March 20, 2017

Mexico's CENACE Determines Assets for Power Transmission and Distribution Networks

Holland & Knight Alert
Carlos Ochoa | Alberto Esenaro

Mexico's National Energy Control Center, or Centro de Control de Energía (CENACE), is the non-centralized government body that operates the country's Wholesale Power Market, or Mercado Mercado Eléctrico Mayorista (MEM). As such, it manages the power market's transmission and distribution activities.

For that purpose, in December 2016 CENACE determined the assets that comprise the National Transmission Network and General Distribution Networks for the power market:

National Transmission Network

  • Elements of high-voltage networks with a nominal voltage higher or equal to 69 kilovolts (kV)
  • Substations with transformation elements for a nominal voltage higher or equal to 69 kV (low side), as well as elements of self-use for starting power plant units or for static VAR compensators

General Distribution Networks

  • Mid-voltage substations with a nominal voltage higher or equal to 13.2 kV (low side) but lower than 69 kV, where emergency and black start power plant units are interconnected
  • Substations with transformation elements for a nominal voltage higher or equal to 69 kV (high side), and higher or equal to 13.2 kV but lower than 69 kV (low side)

Considerations for the Private Sector

The importance of these provisions is that the transmission and distribution of power are still state-controlled activities and follow different rules from private-sector activities. However, the private sector may find business opportunities in all power market activities when following the corresponding legal provisions for procurement and investing.

Holland & Knight's energy law attorneys have extensive experience on a variety of matters and projects in the power generation industry and energy sector. For more information, contact Holland & Knight's Mexico City office.


   

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem. Moreover, the laws of each jurisdiction are different and are constantly changing. If you have specific questions regarding a particular fact situation, we urge you to consult competent legal counsel.


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