The CELs were implemented in national legislation in 2014 as a mechanism to promote carbon reduction in the energy matrix and increase the percentage of electricity from non-fossil sources, setting goals of 20% in 2018 and 35% in 2024.
But to guarantee its effectiveness as an indicator of progress in this process, the legislation established annual incremental requirements for energy consumers and excluded natural gas combined cycle generation as a technology that contributes to the reduction of greenhouse gas emissions. .
CFE currently operates a total of 44 combined cycle plants in Mexico, which in total generate more than 57% of the electrical energy in Mexico.
The renewable energy sector rejects the agreement
The Mexican Association of Wind Energy (AMDEE) and the Mexican Association of Solar Energy (ASOLMEX) said in a statement that the CRE’s decision “has completely changed the assumptions and mechanisms planned to promote the energy transition” and has generated concern to the undermine the institutional framework that organizes and guides emissions mitigation efforts, which are intended to guarantee a healthy environment for Mexican citizens.
Among the modifications proposed in the agreement, the inclusion of new provisions and definitions stands out. Specific criteria have been added that must be met to consider a project as efficient cogeneration. For example, it is established that the electricity generated must be used to satisfy the needs of establishments associated with cogeneration, as long as energy and economic efficiency is improved compared to conventional generation plants.
In addition, the concept of “Fuel Free Energy” (ELC) has been incorporated, which refers to the electrical energy attributable to the use of clean energy in each case, in accordance with the parameters established in the methodology.
The Mexican Wind Energy Association and the Mexican Solar Energy Association made an urgent call to strengthen decarbonization mechanisms in the electricity supply and respect the instruments contemplated in the current legal framework to achieve these objectives.
Wave of protections in sight?
The agreement establishes that any challenge to this administrative act must be carried out through an indirect amparo trial, in accordance with the provisions of article 27 of the Law of Coordinated Regulatory Bodies in Energy Matters, before the jurisdictional bodies of the Judiciary of the Federation, within the term established in the Amparo Law.