Wednesday, October 9, 2019

Mexico: Government Proposes Granting Clean Energy Certificates to Geothermal Power Plants

Mexico's energy ministry might fast-track big shift in power CELs market (ICIS)

Mexico’s energy ministry Secretaría de Energía (SENER) may be able to fast-track another major regulatory change it proposed that market sources say could dramatically reduce the price of clean energy certificates (CELs) and significantly alter the market for that product, a key differentiator for renewables projects.

The proposal posted to the website of regulatory reform agency Comisión Nacional de Mejora Regulatoria (CONAMER) on 1 October would grant CELs for up to twenty years to legacy generators of clean energy (including CFE’s hydroelectric and geothermal plants) as well as those plants built by renewables companies that flocked to Mexico after the 2013-2014 energy reform. 

If made official, the SENER proposal would grant numerous CELs to CFE’s existing hydroelectric and geothermal plants going forward. According to the SENER proposal, CFE’s clean energy plants generated nearly 66% of gross clean energy produced in Mexico in 2018.