March 13, 2017

Mexico's Ministry of Energy Issues Interconnection Manual for Small Capacity Plants

Holland & Knight Alert
Carlos Ochoa | Alberto Esenaro

Mexico's Energy Reform of 2013 opened activities of the country's power market to private investors. Before the reform, large-scale power generation was reserved to the state-run Comisión Federal de Electricidad (CFE), or to private investors through government contracts under an independent power producer structure. Self-supply and co-generation was allowed if complying with certain regulations.

Under the Power Industry Law, power plants with capacity below 0.5 megawatts (MW), designated as small capacity plants, are not required to obtain a permit from the Energy Regulatory Commission, or Comisión Reguladora de Energía (CRE). However, they can generate only for self-use or trade through a basic power supplier.

In December 2016, Mexico's Ministry of Energy issued the manual for requesting and keeping interconnection to the public power network of small capacity plants.

The manual is an important step toward completing the Mexican government's efforts to make the power market and Mexican wholesale electricity market (MEM) functional, as well as to opening opportunities to all investors sector-wide.

Holland & Knight's energy law attorneys have extensive experience on matters in the power generation industry, including a variety of projects in the energy and related hydrocarbons 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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