Jose Antonio Prado and Carlos Ochoa are Partners, and Alberto Esenaro Arteaga is an Associate all in our Mexico City office.
Mexico's National Energy Control Center, or Centro de Control de Energía (CENACE), is the non-centralized government body that operates the country's Wholesale Power Market, or Mercado Mercado Eléctrico Mayorista (MEM). As such, it manages the power market's transmission and distribution activities.
For that purpose, in December 2016 CENACE determined the assets that comprise the National Transmission Network and General Distribution Networks for the power market:
National Transmission Network
- Elements of high-voltage networks with a nominal voltage higher or equal to 69 kilovolts (kV)
- Substations with transformation elements for a nominal voltage higher or equal to 69 kV (low side), as well as elements of self-use for starting power plant units or for static VAR compensators
General Distribution Networks
- Mid-voltage substations with a nominal voltage higher or equal to 13.2 kV (low side) but lower than 69 kV, where emergency and black start power plant units are interconnected
- Substations with transformation elements for a nominal voltage higher or equal to 69 kV (high side), and higher or equal to 13.2 kV but lower than 69 kV (low side)
Considerations for the Private Sector
The importance of these provisions is that the transmission and distribution of power are still state-controlled activities and follow different rules from private-sector activities. However, the private sector may find business opportunities in all power market activities when following the corresponding legal provisions for procurement and investing.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.