Institutional Implementation of In-Kind Subsidies for Distributed Generation: Multi-Level Governance and Policy Design in Nuevo Leon

Roberto Durán-Fernández and Ernesto Stein
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Roberto Durán-Fernández: ITESM - Tecnológico de Monterrey = Monterrey Institute of Technology
Ernesto Stein: ITESM - Tecnológico de Monterrey = Monterrey Institute of Technology

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Abstract: This article develops an institutional implementation model for a public policy aimed at replacing traditional residential electricity subsidies with in-kind schemes through the delivery of solar photovoltaic systems. Using a multilevel governance approach, the technical, legal and financial capabilities of federal, state and local stakeholders are analyzed, as well as the conditions that are necessary to articulate this policy with existing public programs in Mexico. The study proposes a scalable institutional design, based on public-private partnerships, competitive bidding mechanisms and progressive financing schemes. Enabling regulatory instruments are identified and territorially focused implementation routes are proposed, taking the state of Nuevo Leon as a baseline case. The article concludes with operational recommendations for effective coordination among government branches and presents a duplicable operational model for other regional contexts.

Keywords: Energy governance; distributed generation; multilevel coordination (search for similar items in EconPapers)
Date: 2026-02-25
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