Friday June 19, 2020 – Good news for those considering solar!
Friday June 19, 2020
While little has changed and there is no further definition as to who will be affected or, in what way solar in Mexico will be affected, the challenges to the government announcement have been huge. There are many individual and group court cases moving forward. At this time there can be no implementation of any changes to the current rules and regulations for home based solar installs.
Our information is, that until the courts resolve the many challenges to the May 19th announcement, the current procedures will remain in place. This will not be a quick resolution, simply because of the volume of challenges and the court system is not a system that responds rapidly.
So for anyone considering solar, at least for the next few months, there will be no changes in the proceedure for an installation.
We have kept the translation listed below, for those who may not be familiar with the government proposals re solar in Mexico.
NOTE: This is not an official translation.
Mexico City, As of April 29, 2020
AGREEMENT to ensure the efficiency, Quality, Reliability, Continuity and Safety of the National Electricity System, in recognition of the SARS-CoV2 virus disease epidemic (COVID-19).
The National Centre for Energy Control, based on the provisions of the second paragraph of Articles 1, paragraph 2 , 4, paragraph 5, paragraph, 6, 1,7, 25, 34, 107, 108, First paragraph 1, 2, 5, 34, 158 and 159 of the Electricity Industry Act and
First. - That the World Health Organization declared on March 11, 2020 as a global pandemic to COVID-19 coronavirus because of its capacity for contagion to the general population.
Second. - That the General Health Council, at the first extraordinary session of 19 March 2020, decided to recognize the SARS-CoV2 virus disease epidemic, COVID-19 in Mexico, as a serious priority care illness, for which it established the necessary measures for the prevention and control of the epidemic and was permanently established as a health authority.
THIRD.- That on March 23, 2020 was published in the Official Journal of the Federation (hereinafter the "DOF"), the "AGREEMENT by e/ that e/ Council of Health Generates / recognizes the epidemic of disease by e / SARS-CoV2 virus (COVID-19) in Mexico, as a serious disease of priority care, as well as establish the activities of preparation and response to said epidemic. '(i) which determines that the Ministry of Health would establish the necessary measures for the prevention and control of such an epidemic, in consensus with the units and entities involved in its implementation and define the specific modalities, the start and end dates of the same, as well as their territorial extension.
Fourth. - That the Ministry of Health published on 24 March e/ "AGREEMENT by e/ that the preventive measures to be implemented for the mitigation and control of health risks involved in disease by e/ SARS-CoV2 virus (COVID-19). in which it was determined that in the public sector the Holders of the Administration and Finance Areas or counterparts or the competent authorities in the institution concerned would determine the essential functions in charge of each institution.
Fifth. — That on 30 March 2020 the General Health Council published in the DOF, the "AGREEMENT by e/ declared as a health emergency due to force majeure, to the epidemic of disease generated by e/ SARS-COV2 viruses (COVID-19). "
Sixth. - That on 31 of the same month and year the Ministry of Health published in the DOF, the "AGREEMENT by e/ that extraordinary actions are established to attend to /a health emergency generated by e/ SARS-CoV2 virus", which sets out in its ARTICLE FIRST as an extraordinary action, to address the health emergency generated by the SARS-CoV2 virus, which the public, social and private sectors must implement the measures referred to in that document, including in fraction II, that can only continue in operation activities, considered essential, such as Io are necessary for the conservation, maintenance and repair of the critical infrastructure that ensures the production and distribution of essential services; namely: drinking water, electricity, gas, oil, gasoline, turbosine, basic sanitation, public transport, hospital and medical infrastructure, among others that could be listed in this category.
Seventh. — That the first paragraph of Article 4 of the Law on the Electricity Industry (LIE) provides that the Electricity Supply is a service of public interest and the first paragraph of Article 5 of the same Law states that the Federal Government, Generators, Carriers, Distributors, Market Participants, qualified Users and the National Energy Control Centre (CENACE) , each within the scope of their competences and responsibilities, shall carry out the acts that are necessary to maintain the integrity and efficient functioning of the National Electricity System (NSS).
Eighth. - That the first paragraph of Article 6, sections I and III of the LIE, provides that the State shall establish and implement the policy, regulation and supervision of the electricity industry through the Secretariat of Energy (SENER), within its competence, taking as objectives, inter alia, to ensure the efficiency, quality, reliability, continuity and safety of the NSS.
Ninth. - That corresponds to SENER among others; establish, drive and coordinate the country's energy policy, as well as monitor its priority compliance with energy security and diversification, energy savings and environmental protection, promote that the participation of individuals in the sector's activities is in the terms of legislation and applicable provisions, and carry out medium- and long-term energy planning , as well as to lay down economic and social guidelines for the national energy sector, in accordance with the applicable provisions, taking into account, inter alia, the criterion of energy sovereignty and security.
Tenth. - In accordance with the first paragraph of Article 11, sections I, II, III, XIII and XV of the LIE, the Secretariat is empowered to establish, conduct and coordinate the country's energy policy on electricity; formulate sectoral programmes for the development of the electricity industry under the National Development Plan, lead the planning process and develop the NSS Development Programme; prepare and coordinate the implementation of the strategic infrastructure projects needed to comply with national energy policy, as well as issue an opinion on the operation of the Wholesale Electricity Market (MEM).
Eleventh. - That Article 15 of the LIE provides that the State shall exercise operational control of the NSS, through CENACE.
Twelfth. - That in accordance with Article 94 of the LIE, the CENACE shall operate the MEM in accordance with that LIE and in that market the Qualified Generators, Marketers and Users Market participants may carry out the transactions referred to in Article 96 of the LIE, in accordance with the Market Rules.
Thirteenth. - That Article 132 in accordance with 136 of the LIE oblige the State, under emergency conditions, to guarantee the electricity supply, under conditions of reliability, in order to meet the electricity demand of end users under conditions of sufficiency and law enforcement, in order to deal with the pandemic that is lived, dictating or executing the measures that this secretariat determines.
Fourteenth. - That in connection with the contingency caused by the preventive measures to be implemented for the mitigation and control of health risks involved in the disease by SARS-CoV2 virus (COVID-19), and since in past days the Ministry of Health announced Phase 3 of the Health Emergency referred to, and considering that there has been a reduction in electricity consumption by end users and that it is of high priority strengthening the Reliability of the Electricity Supply to users of substantive activities and society in general, the Secretariat informed CENACE of the need to implement the necessary mechanisms, within the scope of its powers, to strengthen and maintain the Quality, Reliability, Continuity and Safety of the Electricity Supply, in order to address the emergency situation and thereby minimize risks that prevent meeting the electrical demand of End-Users under conditions of adequacy and Law Enforcement.
For the above, I proceed to issue the following:
First. — That in accordance with the recitals set out above, in particular the Tenth, Third and Fourteenth, at this time the CENACE makes the knowledge of the Market Participants, that in order to strengthen and maintain the Quality, Reliability, Continuity and Safety of the Electricity Supply during the contingency caused by the SARS-CoV2 virus (COVID-19), the provisions of the Single Annex containing the Technical and Operational characteristics, which are necessary to ensure the Reliability Electrical Supply, which may change depending on the requirements necessary to preserve the NSS, with the energy regulatory commission and the SENER informed, in the terms of Article 158 of the LIE and other provisions that are detached therefrom, as regards the content and scope of this Agreement , and its respective Annex.
Second. - Publish this agreement, in Market Information System. This is issued on the basis of Articles 25, fifth paragraph, 27, sixth paragraph, 28, fourth and fifth paragraph, 49, first paragraph and 90, first paragraph, of the Political Constitution of the United Mexican States; 1 0, first and third paragraphs, 30 . , first paragraph, fraction I, and 45, of the Organic Law of the Federal Public Administration; 10, 20 60, first subparagraph, 11, 12, 14, first subparagraph, fraction I, 15, 17, 21, 22, first subparagraph, sections I, II and last paragraph and 59, first subparagraph, sections I, V and XIV, of the Law Federal Of Parastatal Entities; 107, 108 and 110, first and second, of the Electricity Industry Act; FIRST, first paragraph, SIXTH, second paragraph, TWENTYTH, FIRST, first paragraph, section I, and TWENTY FOURTH, of the Decree establishing the National Centre for Energy Control; 1 0, 20, first subparagraph, fraction III, and (3) of the Regulations of the Federal Law of Parastatal Entities; Section A, fraction I, numeral 18, of the Relationship of Parastatal Entities of the Federal Public Administration, published in the Official Journal of the Federation on August 15, 2019; and I, first paragraph, paragraph, paragraphs A, section II and 9, of the Organic Statute of the National Centre for Energy Control, which was created in the Official Journal of the Federation on 20 April 2018.
Di National Center and Energy Control
UNIQUE ANNEX (TECHNICAL)
1. That during 2019 and at the date of 2020, 3 transient failures occurred in the 400 kV network between the Escárcega - Ticul Electric Substations that caused the simultaneous disconnection of the 400 kV double circuit and the interruption of the 415, 1736 and 515 MW Power Supply of the Yucatan Peninsula. In addition, in the same period, transient failures with disconnections from a 400 kV transmission line have been presented on 16 occasions, between the Tabasco Electric Substations — Escárcega and Escárcega — Ticul.
2. That during 2019 and to the date of 2020 there have been 2 simultaneous disconnections of the 2 circuits of 400 kV between the Ixtepec Power Power Substations — Juile, with the loss (disconnect) of 1345 MW on January 24, 2019 and 30 MW on May 31, 2019 MW of wind generation. In the first, a load of 103 MW per operation of the automatic low frequency load cutting scheme was affected.
3. That the 400 kV 2-line towers between the Manuel Moreno Torres — Juile and Malpaso — Juile Electric Substations have been failed since 20 January 2020 and in the process of rebuilding.
4. That during the testing period prior to the commercial operation of photovoltaic power plants in the North-West of the country, on 15 April 2020 the phenomenon of electromechanical oscillations in the National Interconnected System (SIN) was stimulated on 2 occasions.
5. That the phenomenon of electromechanical oscillations, is a dynamic energy exchange behavior in the Electric Power System that could have devastating effects on the reliability and integrity of the SIN.
6. That on April 29, 2020 there was a transient failure in the 400 kV line between the Electric Substations Wet Earth - Atequiza of the Western Regional Control Management and by the voltage despondenment, there was a sudden reduction of 410 MW and recovery to its original capacity in 3 minutes in the generation of photovoltaic power plants of that Management.
7. That on 29 April 2020, a transmission structure of the 400 kV line collapsed between the Champayan Electric Substations — Three Tables, in the Monterrey corridor — Altamira, being de-service for reconstruction.
8. That on 29 April as a result of the failure in the 400 kV line between the Champayan Electric Substations — Three Tables stimulated the phenomenon of electromechanical oscillations in the SIN, causing the interruption of 166 MW of users of the Northwest and West Control Management, 39 MW of photovoltaic generation in the West, as well as the disconnection by transient voltage despondenment of 2 Wind Power Plants in the area of Ciudad Victoria , Tamaulipas with 140 MW.
9. That on April 28, 2020 there was a transient failure in the 400 kV line between the Underground Electric Substations — Aguascalientes Power of the Western Regional Control Management and by the voltage despondenment, there was a sudden reduction of 460 MW and recovery to its original capacity in 3 minutes in the generation of photovoltaic power plants of that Management.
10. That the intermittent generation of wind and photovoltaic power plants affects the reliability of the NSS in adequacy, quality and continuity in the Electrical Supply.
11. That wind and photovoltaic power plants do not contribute to the primary regulation of frequency quality control.
12. That wind and photovoltaic power plants do not contribute physical inertia to the stability of the National Electricity System (NSS).
OPERATIONAL CONTROL ACTIONS AND STRATEGIES TO STRENGTHEN THE RELIABILITY OF THE NATIONAL ELECTRICITY SYSTEM
Based on the above considerations, the following actions and operational strategies will be applied to strengthen the Reliability of The Power Supply in the NSS.
First. The electricity infrastructure of the National Transmission Network will be operated within its design capacity.
Second. Depending on the availability of generation resources, the operational limits of major transmission corridors will be subject to operation at specified magnitudes without the Remedial Action Schemes (EAR) dependency.
Third. In the operational condition that does not have a sufficiency of generation resources in any zone, region, or system, the transmission limits determined with the dependence of the OERs will be activated.
Fourth. To maintain control of voltage regulation by minimizing the opening of transmission lines, adding physical inertia and short-circuit fault currents, Power Center Units (Must Run) will be enlisted in some regions of the SEN.
Fifth. From 3 May 2020, pre-operational tests of intermittent wind and photovoltaic power plants in the process of commercial operation are suspended. Likewise, for those who have not initiated, pre-operational tests will not be authorised. (Emphasis - Emerald Coast Solar)
Sixth. In Electrically Isolated Interconnected Systems, with the integration of intermittent wind and photovoltaic power plants, operational actions and strategies will be implemented to strengthen the sufficiency, quality and continuity of the Electrical Supply. (Emphasis - Emerald Coast Solar)
Seventh. Applications for scheduled licenses in the National Transmission Network will be studied and analyzed to determine the feasibility, dates and times at which the reliability of the NSS is maintained without EAR's dependence on the occurrence of the N-l contingency.
By the Director of Operation and System Planning, In addition to the generic regulatory provisions cited above, the powers provided for in the first subparagraph of Article 3( first subparagraph, paragraph B, section I, 13, sections IV, XXI, XXII and XXVII and 17, sections I, II and III, of the Organic Statute of the National Energy Control Centre, published in the Official Journal of the Federation on 20 April 2018, apply to it. (Emphasis - Emerald Coast Solar)
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As more information becomes available, we will update this page.