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During the last couple of months the Mexican power sector has been impacted by regulatory changes and bills of amendments that may disrupt the way power companies operate and plan their investments since the enactment of the energy reform. At present there is uncertainty with new investments given the change in the energy policy of the government with respect to renewable energy, restrictions on legacy offtake agreements and other measures impacting competition in the power sector. However, there is still opportunity within the power sector, and therefore many companies are analyzing the feasibility of entering distributed and isolated generation, given both are exempted activities that do not require generation permits from the Energy Regulatory Commission (“CRE”, Comisión Reguladora de Energía) and the applicable interconnection regulations are less strict than for other projects connected with the national grid.
Continue Reading Despite Regulatory Changes in Mexico, Distributed Generation Still Offers Opportunities for Power Producers