Supporting the energy transition in Mexico

Project description

Title: Energy Transition Support Programme in Mexico (TrEM)
Commissioned by: Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Mexico
Partner: Mexican Secretary of Foreign Affairs (SRE), Mexican Secretary of Energy (SENER), National Commission for the Efficient Use of Energy (CONUEE), Energy Regulatory Commission (CRE), National Center for Energy Control (CENACE)
Lead executing agency: Agencia Mexicana de Cooperación Internacional para el Desarrollo (AMEXCID); Mexican Agency for International Development Cooperation  
Overall term: 2019 to 2022

Context

The legislation already in place in Mexico makes a good foundation for using sustainable and renewable energy. The country would like to establish a reliable energy supply with competitive prices. The aim is to increase the proportion of renewable energy used by 2030. Mexico has committed to international agreements to tackle climate change. 

With the General Climate Change Law and Energy Transition Law, the Mexican Government is becoming actively involved in protecting the climate. The Energy Transition Law in particular forms the basis for the country’s political activities in energy generation and use, increasing energy productivity and reducing emissions of greenhouse gases. 

Objective

Based on the 2030 Agenda and new laws, Mexico uses more renewable energy and has become more energy-efficient. 

Approach

The project supports the Mexican Government in implementing improvements in connection with the energy supply. To this end, human resources and expertise will be strengthened in several public institutions. These institutions include the Secretariat of Energy (SENER), the Energy Regulatory Commission (CRE) and the National Center for Energy Control (CENACE). The aim is to promote an exchange of experience and expertise, including at international level. The project is also to take on an advisory role in the areas of renewable energy use and energy efficiency. Issues such as gender equality, accountability and transparency are to be incorporated into the change processes. The project supports the development of information systems and helps to monitor the energy transition. 

The project advises important public and private institutions, scientists and ordinary citizens on the development of schedules and technologies for realising the energy transition. For this purpose, local authorities in Mexico will be recommended to introduce a municipal energy data monitoring system. Networks between representatives of federal states and local authorities are to be created to raise awareness of renewable energy use and energy efficiency. 

The programme works closely with international partnerships which provide funding for implementing energy efficiency measures. The aim is to promote the exchange of experience. 

The planning and control tools used in Mexico for operating the national electricity system (SEN) are to be adapted while the use of renewable energy is increased. Recommendations for legislation will be made based on analysis and prioritisation of issues involved. Where appropriate, the project will also recommend new tools for grid planning and system operation. The long-term goal is to increase the flexibility of the electricity system while at the same time ensuring the system’s reliability when using renewable energy. 

A further goal is to develop decentralised energy production from renewable sources. This will be achieved by supporting new business models and increasing participation by the private sector. To this end the project will issue advice, taking into account in particular the financial situation and the market in Mexico. The project focuses on developing and introducing new financing mechanisms or finance products, and reducing regulatory obstacles. 

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