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.
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
The integration of the SAE into intermittent power plants with a valid permit will be considered a technical modification, meaning that for interconnection purposes, the request for the corresponding studies must be submitted to the National Energy Control Center (CENACE), and the permit modification request must be sent to the CRE.
Power plants eligible to receive Clean Energy Certificates (CELs) that are associated with an SAE will not be able to receive additional CELs for the stored electricity. They must demonstrate to the CRE the electricity produced from clean energy, not including stored energy.
Likewise, while the adjustments specified in the transitory section are made, the SAE will be able to offer its products and services under CENACE''s current conditions.
The interconnection request for the SAE-CE, SAE-AA, and non-associated SAE modalities must be made according to the provisions of the Manual for the Interconnection of Power Plants and Connection of Load Centers (MIC)2, or the guideline that modifies or replaces the MIC.
For the SAE-CC modalities that participate in the market and non-associated SAE, as well as for the SAE-CE that intends to be loaded from the RNT or the RDG, connection studies must be conducted in accordance with the MIC provisions, or the guideline that modifies or replaces the MIC.
In the case of SAE-GEs, the SAE must follow the requirements set out in the general administrative provisions; the contract models; the methodology for the calculation of consideration; and the general technical specifications applicable to distributed generation power plants and distributed clean generation power plants, issued through Resolution RES7142/2017, or the instrument on exempt generation issued for such purpose; as well as the provisions of the Interconnection Manual for Generation Plants with a Capacity of less than 0.5 mw3.
An SAE, in its different modalities, may offer the related services established in the current regulation as long as it complies with the market rules. The MEM includes the following services:
CENACE must propose adjustments to the market rules that detail the technical requirements, assignment, dispatch, and settlement of the SAE that wish to provide the related services included in the MEM. Until this happens, an SAE''s participation in the short-term energy market will be limited to the delivery or withdrawal of energy, and the delivery of power in the power balance market.
The SAE-CE, SAE-AA, and non-associated SAE modalities will have the regulatory treatment of a power plant. Consequently, the CRE must issue or modify a generation permit for their operation and implementation.4
The permittee will be entitled to all rights and obligations established in the generation permits and import and export authorizations, as would any other power plant.
As stated above, the DACG aim to integrate SAE into the SEN. To this end, the DACG specify the different modalities under which the integration may be carried out, the general conditions for the integration, the specific conditions applicable to each of the modalities, the connection and interconnection procedures, and the general conditions for obtaining generation permits in various cases. Likewise, the DACG provide for the possibility for SAE to offer related services.
The DACG''s implementation will prevent the administration from refusing to grant permits to variable energy projects and it will allow SAE to offer related services.
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