Lack of clear rules hampering EV charging infra in Mexico

A lack of clear rules is one of the main inhibitors to the development of a Mexican electric vehicle (EV) charging network, according to a study commissioned by automotive association AMIA.

The research was carried out by consulting firm Frost & Sullivan and provides recommendations for a policy that, under a joint strategy with the government, includes incentives for production and consumption, the development of charging infrastructure and availability of sufficient and affordable clean energy.

According to Frost & Sullivan, around 1,340 public or semi-public charging stations are operating in Mexico, with some 3,210 charging connectors and an average of 2.4 connectors per station.

“Although Mexico is the country with the largest number of charging points in Latin America, there is an important need to increase the number of charging stations to achieve greater adoption of electric vehicles,” the study reads.

Lorena Isla, Frost & Sullivan consulting director for Latin America, said during the presentation of the study that, to achieve this increase, the industry needs clear rules from governments to facilitate decision-making.

In the study “lithium is mentioned, energy marketing schemes for charging infrastructure are also mentioned and the need for clear rules is put on the table so that all actors have certainty when making decisions,” Isla said.

She said that although vehicle manufacturers affiliated with AMIA tried developing an electric charger network, third parties have already emerged that are dedicated to the development of the charging infrastructure.

“Among the recommendations, the point is mentioned that these clear rules are needed for other participants to come in to develop this infrastructure,” Isla said.

The implementation schedule of the proposed electromobility policy suggests that in 2024, the guidelines for energy charging and the regulation of new structures or networks should begin to be defined, while an official standard for chargers and connectors should be created in 2025.

AMIA technical director Oswaldo Belmont said the association signed an agreement with state power utility CFE in 2015, under which EV buyers with home charging points may request a second meter so that household power bills are not affected and become more expensive.

Belmont added that the number of public charging systems has grown due to efforts made by the automakers with developers, and CFE helped this development by installing some charging points around the country.

Among the administrative incentives for the development of charging infrastructure, the study mentioned agile permitting and CFE feasibility studies, facilitated renewable energy permitting by regulator CRE and increasing the solar generation capacity of individuals to 1MW.

In terms of tax incentives, Frost & Sullivan also recommended reducing or eliminating VAT for chargers for three or four years, allowing income tax deductions for individuals and companies that install infrastructure, import tax exemptions for chargers, more agile permitting and feasibility studies by CFE for installation and mapping the areas where electrical infrastructure is most feasible to facilitate processes and permitting.

Regarding PPPs or efforts by companies to install charging infrastructure on their own, the CEO of AMIA, José Zozaya, said that each company has its own strategies. 

“What I can assure you is that there is a commitment from everyone to advance new strategies for the use of clean energy and what this entails,” he added.