• 25 March 2020

CRE publishes NOM to determine the percentage of fuel-free energy

The Energy Regulatory Commission ("CRE") published in the Official Gazette the Mexican Official Standard NOM-017-CRE-2019 ("NOM"), Methods for Measuring Variables to Calculate the Percentage of Fuel-Free Energy and Procedure for Evaluating Conformity.

This NOM directly impacts electricity generators that use fuels and are entitled to receive Clean Energy Certificates (CELs) due to the percentage of fuel-free energy they generate in terms of the Electric Industry Law.

Specifically, the NOM is applicable to:

1) Power plants with efficient cogeneration processes (Not applicable to power plants with cogeneration permits and legacy interconnection contracts)

2) Clean power plants that use fossil fuels

3) Low-emission technologies and thermal power plants with carbon dioxide capture and geological storage or biosafety processes

4) Power plants using hydrogen

5) Hydroelectric power plants

Please bear in mind that the power plants that have cogeneration permits, are certified as efficient cogeneration plants in terms of the previous regime and whose legacy interconnection contract remains in force will be excluded from the application of this NOM.

The percentage of fuel-free energy is determined based on the General Administrative Provisions that contain the efficiency criteria and establish the calculation methodology for determining the percentage of fuel-free energy in energy sources and electricity generation processes (the “Provisions), which establish the variables and formulas to be used to calculate the percentage of clean energy. This NOM will complement the Provisions for it establishes the minimum metrological requirements and measurement methods for obtaining the values of the variables set out in the Provisions.

The NOM also establishes the procedure by which the power plants’ owners can demonstrate their compliance with the NOM. That is, it establishes the way in which the verification units may prove that the variables established in the Provisions are based on the requirements and methods contained therein. The above, so that generators can specify the percentage of fuel-free energy that they will be entitled to receive.

For more information, the NOM can be found in the following link: https://bit.ly/2JkBC9f

In case of any inquiries about the content of this Alert, please contact:

Cecilia Curiel (cecilia.curiel@solcargo.mx)

Constanza Aguilar (constanza.aguilara@solcargo.mx)