Regulating Electric Power Markets

18th Annual Mexican Energy Conference

Friday, November 21, 2014 Four Seasons Hotel, Mexico City

Francisco Xavier Salazar Diez de Sollano

Chairman

!

Transmission Generation Supply System Operation Distrubution

Previous Industrial Organization

Final Users

CFE

CFE Imports

CFE IPP

Small Producer

Remote Self-supply

CHP

Imports (others)

Local Self-supply

Own CFE

Own CFE

State Exclusivity on Public Service

Transmission Generation Supply System Operation Distrubution

Previous Industrial Organization

Final Users

CFE

CFE Imports

CFE IPP

Small Producer

Remote Self-supply

CHP

Imports (others)

Local Self-supply

Own CFE

Own CFE

Clean Energy Requirements

Transmission Generation Supply System Operation Distrubution

Previous Industrial Organization

Final Users

CFE

CFE Imports

CFE IPP

Small Producer

Remote Self-supply

CHP

Imports (others)

Local Self-supply

Own CFE

Own CFE

Transmission Generation Supply System Operation Distribution

New Industrial Organization

Final Users

CFE Generation Units

IPP

Cenace

SP

Imports

Generators

Previous Self-Supply

Isolated Generation

CFE Transmission +

contracts with private sector

CFE LDCs +

contracts with private sector

Others

CFE

Wholesale Market Operation

Market

Transmission & distribution

Supply Side Demand Side

Wholesale Market Operation

Power Plant(s)

• May aggregate • Capaciity ≥0.5 MW

Supply Side

Generators

Marketers

Basic service retailer

Market for

Ancillary Services

Capacity

Energy

FTR

CEC

Others

Wholesale Market Operation

FTR holders

Clean energy certificates holders

Power Plant(s)

Dist. generation (<0.5 MW) Supply Side

Generators

Marketers

Basic service retailer

Market for

Ancillary Services

Capacity

Energy

FTR

CEC

Others

Wholesale Market Operation

Last resource supplier (LSE)

Basic service retailer (LSE)

Qualified retailer (LSE)

Eligible users

• ≠No public service • D ≥3 MW, 1st year • D ≥2 MW, 2nd year • D ≥1 MW, 3rd year

Demand Side

FTR holders

Clean energy certificates holders

Power Plant(s)

Dist. generation (<0.5 MW)

Generators

Marketers

Basic service retailer

Market for

Ancillary Services

Capacity

Energy

FTR

CEC

Others Supply Side

Wholesale Market Operation

Demand response

Demand response

FTR holders

Clean energy certificates holders

Power Plant(s)

Dist. generation (<0.5 MW)

Generators

Marketers

Basic service retailer

Market for

Ancillary Services

Capacity

Energy

FTR

CEC

Others Supply Side

Last resource users Last resource supplier (LSE)

Basic service retailer (LSE)

Qualified retailer (LSE)

Eligible users

Demand Side

Regulated users

Wholesale Market Operation

Transmission & distribution

FTR holders

Clean energy certificates holders

Power Plant(s)

Dist. generation (<0.5 MW)

Generators

Marketers

Basic service retailer

Market for

Ancillary Services

Capacity

Energy

FTR

CEC

Others Supply Side

Demand response

Demand response

Last resource users Last resource supplier (LSE)

Basic service retailer (LSE)

Qualified retailer (LSE)

Eligible users

Regulated users

Topics regulated by CRE

Transmission and distribution: •  Rates •  Tariffs •  Interconnection models •  Expansion •  Interconnection specs •  Disputes •  Interconnectin charges •  Smart grids

Operation: •  Market rules •  Offers •  Market oversight •  Market participant contract

models •  Auctions •  Reliability •  CENACE’s costs

Transmission & distribution

Market for

Ancillary Services

Capacity

Energy

FTR

CEC

Others

Topics regulated by CRE

Supply side

•  Generation permits •  Payments to DG •  Vertical & horizontal separation rules •  Operations between generators & marketers •  Clean energy certificates •  Renewable energy penetration •  Imports •  Registration of marketers

FTR holders

Clean energy certificates holders

Power Plant(s)

Dist. generation (<0.5 MW)

Generators

Marketers

Retail regulated supplier

Topics regulated by CRE

Demand Side

•  LSE permits •  Demand response payments •  Regulated rates •  Last resource prices •  Long term contracts for LSE •  Ownership of certificates •  Capacity requirements •  Registration of eligible users •  Last resource supply •  Payment collection rules

Demand response

Demand response

Last resource users Last resource supplier (LSE)

Basic service retailer (LSE)

Qualified retailer (LSE)

Eligible users

Regulated users

Thank you!

www.cre.gob.mx