On May 3, Cenace published the “Agreement to guarantee the efficiency, Quality, Reliability, Continuity and security of the National Electric System, on the occasion of the recognition of the epidemic of disease due to the SARS-CoV2 virus (COVID-19)” , in which it established that they will apply actions and strategies to strengthen the reliability of the National Electric System (SEN).
The agreement published by the National Center for Energy Control (Cenace) that excludes the participation of new wind or photovoltaic power plants, could generate an increase in the prices of light or subsidies, warned the Federal Commission on Economic Competition (Cofece ).
The above, after the past May 3, Cenace published the “Agreement to guarantee the efficiency, Quality, Reliability, Continuity and security of the National Electric System, on the occasion of the recognition of the epidemic of disease due to the SARS-CoV2 virus (COVID-19) ”, in which it established that actions and strategies will be applied to strengthen the reliability of the National Electric System (SEN).
According to Cofece, some of its provisions of the Agreement could be contrary to the process of competition and free competition, and could be detrimental to consumers and companies, since it is not clear how they will be applied or how long they will be in force.
The Commission explained that although the Agreement does not explicitly order the removal of wind and photovoltaic power plants that are in operation from the order of dispatch, by its wording it is understood that this type of power plant could be the first to leave the system. In addition, the participation of new plants is suspended indefinitely.
He added that stopping new wind and photovoltaic plants from participating in the market, by suspending the pre-operational tests that are required for them to come into operation, exacerbates the uncertainty for planned and future investments in wind and solar generation projects.
The Cofece considered that favoring conventional generating plants, such as those of the Federal Electricity Commission (CFE).
He warned that the Cenace measures could open spaces for discriminatory actions in favor of certain plants and compromise the dispatch of electricity “in conditions of competition as expressly provided for in Article 108 of the Electric Industry Law.”
He considered that the measures are not justified or clarify how it contributes to the stability of the National Electric System (SEN) in the context of the low demand generated by the current health crisis.
Therefore, the Cofece recommended that the measures regarding the wind and photovoltaic plants in operation be based on aspects of reliability, continuity and stability of the SEN; and make them public.
In addition, define and make public the criteria under which the implementation of the measures considered in the Agreement will be suspended.