The CRE of Mexico reduces costs of the Financial Guarantees

The CRE of Mexico reduces costs of the Financial Guarantees

This press release from Mexico’s Energy Regulatory Commission was published using an automatic translation system.

The Governing Body of the CRE approved the methodology that the National Center for Energy Control (CENACE) will use to calculate the Financial Guarantees for the Interconnection of Power Plants and Connection of Load Centers to the National Transmission Network (RNT) and the Networks General Distribution (RGD).

The objective of the Financial Guarantees is to support the complete fulfillment of the interconnection and connection projects.

Previously, the methodology of the Criteria published in June 2015 was used, which established the specific characteristics of the infrastructure required for the Interconnection of Power Plants and Connection of Load Centers. However, the Criteria were without effect after the publication of the Interconnection and Connection Manual in February 2018. In this sense, and in line with the current Manual, the Commission developed the Methodology to calculate the guarantees of interconnection and connection to the RNT and the RGD.

Based on the experience of the application of the Criteria and taking as reference the international standards for interconnection and connection processes, the CRE identified areas for improvement in the determination of the amount of financial guarantees. Thus, the new methodology will be applied taking as reference the information that best represents the projects that request interconnection and connection to CENACE.

With the new methodology, CRE seeks to facilitate access to the connection and interconnection of electricity networks and, therefore, encourage the efficient expansion of the electricity industry, in addition to making the calculation of Financial Guarantees more transparent and better supported.

The CENACE must use the new methodology to perform the calculations corresponding to the Financial Guarantees within a period no longer than 30 days after it is published in the Official Gazette of the Federation. Said calculations will be valid until December 31, 2018, and will be updated annually.

The new methodology of the CRE has the following objectives:

> Generate greater certainty for the applicants in the determination and update of the amount of the Financial Guarantees.

Create greater incentives to use the Planning Modality, which is an efficient way to integrate new projects to the RNT and the RGD.

Use the universe of Interconnection and Connection requests that CENACE has for the calculation of the guarantees and thus obtain more representative costs according to international standards.

Facilitate compliance with the delivery deadlines established in the Manual for Interconnection of Power Plants and Connection of Load Centers.

The issuance of the methodology proposed by the CRE will provide a more solid base for the calculation of the Financial Guarantees, thus encouraging the correct development of the electricity industry, and fostering competition in a context of open markets.

This press release from Mexico's Energy Regulatory Commission was published using an automatic translation system. The Governing Body of the CRE . . .

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