Abstract

This paper analyzes the energy reform that has taken place in Mexico since 2013, driven by steady growth in energy demand and insufficient economic resources. The relevant points in the restructuring process are discussed, shedding light on the impact of recent governmental actions not aligned with the original spirit of the law. This research uses a framework and fundamentals of a well-organized structural process called the textbook model, making a comparative analysis of Mexican reform. It proceeds by presenting the Mexican Electrical System in numbers and how it is affected by the present government’s restructuring process providing positive and negative impacts of several implementations. The main objectives of restructuring were carried out to attract private investment and increase the reliability and efficiency of the system. During the first four years, the reform has attracted investment, in diminishing form in generation but not in transmission and distribution. Therefore, the main reason for this is explained and a brief analysis and the roots of these failures are presented. It is shown that recent political decisions tend to keep the system operator and regulatory agencies under Federal Government control so that it is acting against the main objectives of the original reform. Finally, a summary of the deviation of the reality from the existing law is outlined.

Highlights

  • This paper aims to assess the performance of the Mexican power sector under the restructuring process (2013–2018) and its recent hindering (2018–2021)

  • Private participation in generation was represented by independent power producer (IPP) and Intermedición de Contratos Legados (ICL)

  • We made a comparative analysis of the textbook model with the power sector reform performed in Mexico to evaluate the implementation depth

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Summary

Introduction

Since 1980, movements to reform electric power systems have been implemented around the world. The restructuring process was designed to achieve these goals through competition, price–cost gap reduction, and investment increase [1]. The restructuring process has been documented and condensed in what is called the textbook model; this is a compilation of ten guidelines to achieve the goals above. It increases the possibility to get a highly competitive and unbundled electricity market model [2]. Three systems integrate the Mexican National Electric System (SEN), the isolated electric system in Baja California Sur, the electric system of Baja California interconnected. Three systems integrate the Mexican National Electric System (SEN), the isolated. The electricity consumption in the SEN has primarily relied on electric system in Baja California Sur, the electric system of Baja California interconnected fossil.

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