Mexican law does not currently specifically consider energy storage. However, it is anticipated that upcoming business practice manuals that are being drafted will include several provisions in connection with energy storage. Contact online >>
Mexican law does not currently specifically consider energy storage. However, it is anticipated that upcoming business practice manuals that are being drafted will include several provisions in connection with energy storage.
On May 6, 2024, Mexico''s Energy Regulation Commission (CRE) published on the National Commission for Regulatory Improvement (CONAMER) website the preliminary draft of the agreement issuing the General Administrative Provisions for the Integration of Electric Energy Storage Systems into the National Electric System (DACG).
Mexico has enormous potential to develop renewable energy projects. The country has high solar radiation, wind capacity, and geothermal sources. In addition, with the right technologies and expertise, the country could increase energy storage and green hydrogen projects.
The purpose is also to define the modalities for the integration of SAE with the SEN, outline the general requirements that interested parties must meet for the integration of SAE and participation in any of its modalities and lastly, establish the interconnection/connection procedure that those interested in integrating SAE must follow.
The Storage DACGs are of public order, general interest and observance throughout the national territory, so the National Energy Control Center (Centro Nacional de Control de Energía or CENACE), exempt generators, transporters, distributors, entities responsible for loading and end-users will be subject to the Storage DACGs in which they are applicable, and in a non-discriminatory manner with respect to the type of electric energy storage technology used.
CRE will observe the conditions of the General Administrative Provisions that establish the terms for presenting information related to the corporate purpose, legal, technical and financial capacity, as well as the description of the project and the format of the application for permits for the generation of electric energy. The CRE also will consider: 1) the electric energy generation permit for the modalities that require it, and 2) that the permit holder will be entitled to all the rights and obligations established in the corresponding permits.
In order to begin a process to obtain a permit for electric generation from the new SAE in the modalities that require it, the additional requirements established in the Storage DACGs must be completed.
All the modalities mentioned above must comply with the applicable requirements established in: 1) network code, 2) NOM-001-SEDE-2012, 3) electric installations (utilization) in force or the one that modifies or replaces it, and 4) transporter''s and distributor''s specifications.
The SAE shall install in a point of interconnection or connection the necessary metering systems for the settlement process of the transactions in the Wholesale Electricity Market (Mercado Eléctrico Mayorista or MEM).
For existing power plants, the integration of an SAE will be considered as a technical modification, so it will have to submit to CENACE the request for the corresponding studies, as well as the modification of the permit before CRE, in accordance with the General Administrative Provisions that establish the terms to request the authorization for the modification or transfer of electric power generation or electricity supply permits.
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On May 6, 2024, Mexico''s Energy Regulation Commission (CRE) published on the National Commission for Regulatory Improvement (CONAMER) website the preliminary draft of the agreement issuing the General Administrative Provisions for the Integration of Electric Energy Storage Systems into the National Electric System (DACG). Please see our May 2024 GT Alert for more information.
On Sept. 30, 2024, the CRE''s governing body held an extraordinary session and approved the agreement issuing the DACG. The DACG will not take effect until they are published in the Official Gazette of the Federation.
The DACG aim to establish the modalities and general conditions under which the integration of Electric Energy Storage Systems (SAE) into the National Electric System (SEN) will be carried out, in an orderly and economically viable manner. Specific objectives
The DACG have three specific objectives: (i) establish the general conditions applicable to the SAE and define the modalities for SAE''s integration into the SEN; (ii) establish the general requirements to be met by interested parties for SAE''s integration and participation in any of its modalities; and (iii) establish the interconnection/connection procedure to be observed by those interested in integrating the SAE.
The DACG are mandatory throughout Mexico. Generators, exempt generators, suppliers, transporters, distributors, entities responsible for load, and end users will be subject to the provisions as applicable.
The SAE''s integration into the SEN will be carried out in one of the following modalities, in accordance with the general requirements for each of them: (i) SAE-CE; (ii) SAE-CC; (iii) SAE-AA; and (iv) non-associated SAE, excluding the SAE-GE modality, whose integration will comply with Resolution RES7142/2017.1
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