Regulating Electric Power Markets
18th Annual Mexican Energy Conference
Friday, November 21, 2014 Four Seasons Hotel, Mexico City
Francisco Xavier Salazar Diez de Sollano
Chairman
!
Transmission Generation Supply System Operation Distrubution
Previous Industrial Organization
Final Users
CFE
CFE Imports
CFE IPP
Small Producer
Remote Self-supply
CHP
Imports (others)
Local Self-supply
Own CFE
Own CFE
State Exclusivity on Public Service
Transmission Generation Supply System Operation Distrubution
Previous Industrial Organization
Final Users
CFE
CFE Imports
CFE IPP
Small Producer
Remote Self-supply
CHP
Imports (others)
Local Self-supply
Own CFE
Own CFE
Clean Energy Requirements
Transmission Generation Supply System Operation Distrubution
Previous Industrial Organization
Final Users
CFE
CFE Imports
CFE IPP
Small Producer
Remote Self-supply
CHP
Imports (others)
Local Self-supply
Own CFE
Own CFE
Transmission Generation Supply System Operation Distribution
New Industrial Organization
Final Users
CFE Generation Units
IPP
Cenace
SP
Imports
Generators
Previous Self-Supply
Isolated Generation
CFE Transmission +
contracts with private sector
CFE LDCs +
contracts with private sector
Others
CFE
Wholesale Market Operation
Market
Transmission & distribution
Supply Side Demand Side
Wholesale Market Operation
Power Plant(s)
• May aggregate • Capaciity ≥0.5 MW
Supply Side
Generators
Marketers
Basic service retailer
Market for
Ancillary Services
Capacity
Energy
FTR
CEC
Others
Wholesale Market Operation
FTR holders
Clean energy certificates holders
Power Plant(s)
Dist. generation (<0.5 MW) Supply Side
Generators
Marketers
Basic service retailer
Market for
Ancillary Services
Capacity
Energy
FTR
CEC
Others
Wholesale Market Operation
Last resource supplier (LSE)
Basic service retailer (LSE)
Qualified retailer (LSE)
Eligible users
• ≠No public service • D ≥3 MW, 1st year • D ≥2 MW, 2nd year • D ≥1 MW, 3rd year
Demand Side
FTR holders
Clean energy certificates holders
Power Plant(s)
Dist. generation (<0.5 MW)
Generators
Marketers
Basic service retailer
Market for
Ancillary Services
Capacity
Energy
FTR
CEC
Others Supply Side
Wholesale Market Operation
Demand response
Demand response
FTR holders
Clean energy certificates holders
Power Plant(s)
Dist. generation (<0.5 MW)
Generators
Marketers
Basic service retailer
Market for
Ancillary Services
Capacity
Energy
FTR
CEC
Others Supply Side
Last resource users Last resource supplier (LSE)
Basic service retailer (LSE)
Qualified retailer (LSE)
Eligible users
Demand Side
Regulated users
Wholesale Market Operation
Transmission & distribution
FTR holders
Clean energy certificates holders
Power Plant(s)
Dist. generation (<0.5 MW)
Generators
Marketers
Basic service retailer
Market for
Ancillary Services
Capacity
Energy
FTR
CEC
Others Supply Side
Demand response
Demand response
Last resource users Last resource supplier (LSE)
Basic service retailer (LSE)
Qualified retailer (LSE)
Eligible users
Regulated users
Topics regulated by CRE
Transmission and distribution: • Rates • Tariffs • Interconnection models • Expansion • Interconnection specs • Disputes • Interconnectin charges • Smart grids
Operation: • Market rules • Offers • Market oversight • Market participant contract
models • Auctions • Reliability • CENACE’s costs
Transmission & distribution
Market for
Ancillary Services
Capacity
Energy
FTR
CEC
Others
Topics regulated by CRE
Supply side
• Generation permits • Payments to DG • Vertical & horizontal separation rules • Operations between generators & marketers • Clean energy certificates • Renewable energy penetration • Imports • Registration of marketers
FTR holders
Clean energy certificates holders
Power Plant(s)
Dist. generation (<0.5 MW)
Generators
Marketers
Retail regulated supplier
Topics regulated by CRE
Demand Side
• LSE permits • Demand response payments • Regulated rates • Last resource prices • Long term contracts for LSE • Ownership of certificates • Capacity requirements • Registration of eligible users • Last resource supply • Payment collection rules
Demand response
Demand response
Last resource users Last resource supplier (LSE)
Basic service retailer (LSE)
Qualified retailer (LSE)
Eligible users
Regulated users
Thank you!
www.cre.gob.mx