Analysis of Restructuring the Mexican Electricity Sector to Operate in a Wholesale Energy Market

Juan C. Percino-Picazo, Armando R. Llamas-Terres and Federico A. Viramontes-Brown
Additional contact information
Juan C. Percino-Picazo: Tecnologico de Monterrey, School of Engineering and Science, Av. Eugenio Garza Sada 2501, Monterrey 64849, Mexico
Armando R. Llamas-Terres: Tecnologico de Monterrey, School of Engineering and Science, Av. Eugenio Garza Sada 2501, Monterrey 64849, Mexico
Federico A. Viramontes-Brown: Tecnologico de Monterrey, School of Engineering and Science, Av. Eugenio Garza Sada 2501, Monterrey 64849, Mexico

Energies, 2021, vol. 14, issue 11, 1-26

Abstract: This paper analyzes the energy reform that has taken place in Mexico since 2013, driven by steady growth in energy demand and insufficient economic resources. The relevant points in the restructuring process are discussed, shedding light on the impact of recent governmental actions not aligned with the original spirit of the law. This research uses a framework and fundamentals of a well-organized structural process called the textbook model, making a comparative analysis of Mexican reform. It proceeds by presenting the Mexican Electrical System in numbers and how it is affected by the present government’s restructuring process providing positive and negative impacts of several implementations. The main objectives of restructuring were carried out to attract private investment and increase the reliability and efficiency of the system. During the first four years, the reform has attracted investment, in diminishing form in generation but not in transmission and distribution. Therefore, the main reason for this is explained and a brief analysis and the roots of these failures are presented. It is shown that recent political decisions tend to keep the system operator and regulatory agencies under Federal Government control so that it is acting against the main objectives of the original reform. Finally, a summary of the deviation of the reality from the existing law is outlined.

Keywords: electricity sector reform; market restructuring; unbundling; regulatory capture (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.mdpi.com/1996-1073/14/11/3331/pdf (application/pdf)
https://www.mdpi.com/1996-1073/14/11/3331/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:14:y:2021:i:11:p:3331-:d:569667

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().