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Boosting renewable energy through swaps

Mexico. The future of energy through renewable sources will have two incentives that will allow reaching 35% of generation through clean sources: the financial transmission rights (DFT) and the new possibilities offered by the legal framework in distributed generation, an activity that will increase up to nine times in five years, agreed authorities and businessmen of the sector.

According to the general director of the National Energy Control Center, Eduardo Meraz Ateca, this year the first auction of national electricity DFT will be held, a swap-type financial instrument that will serve as a hedge in case of grid saturation.

In the framework of the Mexico International Renewable Energy Congress (MIREC), the commissioner of the Energy Regulatory Commission (CRE), Guillermo Zúñiga, explained to El Economista that the government will issue the call for interested parties to acquire these instruments at a unit price, such as bonds, and once their market starts, exchanges will be made, typically between marketers and generators, of these "bets" for the future, so that at times of greater use of the network, users obtain profits for the energy they failed to transport.

For his part, the director of Electrical Coordination of the Ministry of Energy, Jeff Thomas Pavlovic, explained that although these transmission rights were copied from a mature market such as the eastern United States, the novelty in the Mexican model will be that instead of determining peak hours per day of the week it will be carried out by four-hour slots starting from 00:00 hours daily, 365 days a year, which will make this market very dynamic in the medium term.

- Publicidad -

Distributed energy goes by grid
To the energy of the basic supply and the market in the network will be added exponentially the distributed energy, for users of less than 0.5 megawatts for their own uses, such as photovoltaic panels on the roofs, in a circuit that is connected to the grid with a bidirectional meter to inject energy in the hours of generation and take it during the night, for example, with which the collection of the receipt of use brings the discount of what was injected, through the net metering instrument, an activity that will go from the current 16,986 permits that the CRE has granted to just over 152,000 in 2020.

According to Alberto Valdés Palacios, president of the National Solar Energy Association (ANES), in Mexico there are about 450,000 users of high consumption domestic tariff (DAC).

Source: El Economista. 
Taken from the National Association of Solar Energy (Anes) of Mexico.

Duván Chaverra Agudelo
Duván Chaverra AgudeloEmail: [email protected]
Jefe Editorial en Latin Press, Inc,.
Comunicador Social y Periodista con experiencia de más de 16 años en medios de comunicación. Apasionado por la tecnología y por esta industria.

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