Mexico's wholesale power market kicks off on January 1

Mexico's energy ministry (Sener) has published the criteria and schedule for the start-up of the country's wholesale power market, which will begin on January 1 with the reception of requests from participants by the national energy control center (Cenace).

Cenace, a fully independent operator, will oversee the wholesale market once it launches. Transmission and distribution infrastructure will remain public property, while the new regulations will allow state utility CFE to partner with the private sector to develop projects.

From January 1, power generators will be able to request permission to participate in this market, and they will be verified by Cenace regarding reliability and efficiency of operations, with Sener authorizing their participation in the market before the end of January.

Public and private energy generation firms, as well as suppliers and users qualified to buy and sell electricity will participate in the wholesale market, allowing competition that will reduce electricity prices to consumers, Sener said in a press release.

The launch of the wholesale market is one of the successes of the energy reform, allowing public and private firms to compete in electricity generation, the ministry said.

Mexico aims to double electricity generation capacity over the next 15 years and supply 100% of the population – a plan which is expected to create 2.5mn jobs by 2025.

The main dates for the launch of the wholesale electricity market are January 1, when Cenace will receive requests from potential participants; January 5-8, when the results of tests carried out by Cenace will be released; and January 29, when the wholesale market will be launched.