Mexico: Energy regulator to launch Power Generation marketplace

Mexico’s National Center for Energy Control (CENACE) has launched its first ever Market for Power Balance, which will be a part of the Wholesale Electric Market (Mercado Eléctrico Mayorista, MEM). This will allow interested companies to buy or sell generating capacity, said the Energy Ministry, SENER.

The goal of the market is to determine pricing signals that can respond to conditions of surplus or scarcity in the National electricity grid’s generation capacity, which would in turn stimulate an adequate demand for power supply in the medium and long terms and act as an incentive for new investors.

SENER authorities have said that establishing a price for power which reflects the value of the existing generating capacity will encourage greater competition and innovation in the electricity generation sector, with the market paying a flat rate to every generating company supplying a particular region, thus attracting the more efficient and low-cost operators.

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