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IP requests to expand the limit of distributed electricity generation due to nearshoring

MEXICO – In the face of companies arriving due to nearshoring and the increased demand for electricity, the private sector is requesting an expansion of the limit for distributed generation (small-scale generation installed near the point of consumption) from 0.5 to 5 megawatts (MW) in order to meet their sustainability goals and have access to cleaner energy.

“We cannot afford to wait for an energy shortage. Dialogue is needed to find a solution, independent of political processes that transcend each presidential term,” he said after participating in a meeting organized by the Chamber of Commerce of Mexico City.

He emphasized that distributed generation is undoubtedly the most viable ally to achieve energy transition in the industrial sector.

According to the most recent report on requests for interconnection of power plants with capacity less than 0.5 MW from the Energy Regulatory Commission (CRE), in the first half of 2023, there were record levels of 2,954.65 MW in 367,207 contracts. This figure represents an investment of 3,952.22 million dollars.

Acra stressed that clean energy is needed by small and medium-sized enterprises, large consumers, investment attraction centers, and large industrial parks involved in nearshoring, where energy demand is constantly increasing.

Initiatives in Congress have not succeeded.

Currently, the limit for distributed generation is 0.5 MW, and although there are initiatives in Congress to expand it to 1 MW, they have not succeeded. One megawatt is still low, so the threshold should reach 5 MW.

The president of Comener admitted that the process of achieving the expansion is not easy, but he is confident that there will be political will, as taking this step involves amending Article 17 of the Electricity Industry Law.

He also mentioned that there is a need to raise awareness and reach agreements between lawmakers, the public administration, and the judiciary.

The importance of this change, he explained, lies in the fact that the greatest benefit is being close to points with a consumption need.


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