The Opening of the Electricity Market and the Diversification of Generation

Trade and the opening of markets have historically paralleled economic growth, as this triggers new opportunities for workers, consumers and companies. The formation of the Wholesale Electricity Market in Mexico uses these concepts and follows as an example the electricity markets already established, such as that of ERCOT in the United States.

For economic growth in the sector, it is essential to make resources more efficient, diversified and optimized. For this reason, increased competition is fundamental. For this reason, the Wholesale Electricity Market was created, which opened Generation and Supply to the private sector. In addition, Clean Energy Certificates were created, medium and long-term auctions to promote clean energy.

According to the 2011 POISE, the distribution of generation in Mexico was centralized in thermoelectric plants, renewable energy was only represented by hydroelectric power plants, geothermal energy and anecdotal wind power generation.

With data from PRODESEN in 2021, generation diversity changed in our country, with solar generation entering 6.2%, efficient cogeneration in ranges of 2.8% and an increase in wind power generation from 0.2% in 2011 to 7.8% in 2021.

The creation of the Wholesale Electricity Market encouraged this diversification and although in these percentages that may be insufficient for global trends, they are the first steps that demonstrate that it is feasible to increase generation with clean technologies in the country and to leave dependence on conventional fuels.

Álvaro Rodríguez Portilla