Mexico’s Planned Wholesale Electricity Market under the Energy Reform - Initial Comments and Areas of Concern
Recorded on Thursday, May 7, 2015:
To purchase a recording, please call 818.888.4444
The Mexican Ministry of Energy (SENER) published the initial draft of the proposed Market Guidelines (Bases del Mercado) for Mexico’s planned Wholesale Electricity Market (WEM) on February 24, 2015. The initial draft has now received multiple comments, pointing out numerous areas of concern. The commentators include the CFE, which remains largely responsible for supply of electricity in Mexico pending implementation of the Energy Reform; renewable energy trade associations; renewable energy companies; and the Consejo Coordinador Empresarial (CCE), a leading organization for representation of business in Mexico.
The areas of concern, as shown by the comments to date, include the impact of the Guidelines on renewable energy; the terms of the long term contracts for capacity, clean energy and Clean Energy Certificates to be granted through auctions; how Legacy Interconnection Agreements and Legacy IPP Power Plants will be managed; the management of Financial Transmission Rights, including legacy rights; the functioning of the Capacity Market and Capacity auctions; integration of the various components of the WEM; implementation of new market concepts in the WEM; and the role of the private sector in market operation and monitoring.
Upon final approval, the Guidelines will establish design principles for the organization and operation of the WEM in accordance with Mexico’s Energy Reform, to be managed by an independent system operator, the National Center for Energy Control (Centro Nacional de Control de Energía, or CENACE). The WEM, as managed by CENACE, will serve as the foundation for a restructured Electrical Power Industry in Mexico under the Reform, designed to foster competition and to attract private investment and expertise to the electrical sector.
The webinar will be presented by the Mexican energy team of Pillsbury Winthrop Shaw Pittman, LLP, an international law firm with deep roots in all aspects of the energy business. The Pillsbury team will provide an overview of the Guidelines, and the commentary and identified areas of concern presented to date.
Michael S. Hindus, Partner, PILLSBURY
John B. McNeece, III, Senior Counsel, PILLSBURY
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