Mexico s Industrial and Commercial Energy Storage Subsidy Policy

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6 Frequently Asked Questions about “Mexico s Industrial and Commercial Energy Storage Subsidy Policy”

Will energy storage technology be commercialized in Mexico?

As there are no particular regulations under Mexican law, we anticipate that energy storage technology will be commercialized as an ancillary service under the Wholesale Electricity Market and frequency response will be a key factor in the industry's development in Mexico.

Does Mexican law cover energy storage?

Mexican law does not currently specifically consider energy storage. However, it is anticipated that upcoming business practice manuals that are being drafted will include several provisions in connection with energy storage.

Is there a demand for energy storage in Mexico?

Presently, there is not a strong demand for energy storage in Mexico. However, after the electricity reform and the commencement of operations of the Wholesale Electricity Market has opened up the market to private investments, other electricity trading alternatives may be developed in Mexico.

Should energy storage be regulated in Mexico?

Mexico Energy storage appears scarcely in Mexican legislation and the few regulations that mention it leave the door open to potentially consider EST as either generation assets or transmission and distribution assets . If EST were regulated as generation assets, they could operate under a regime of free competition.

Will ancillary services affect energy storage projects in Mexico?

These new requirements for the reliability of the Mexican electricity system may force CENACE (the National Centre for the Control of Energy) to launch several auctions to purchase ancillary services that may have a positive impact for electricity storage projects.

Should energy storage be a priority in Mexico?

If energy storage deployment is considered a priority in the following years, Mexico could accelerate investments through a mix of storage procurement targets and financial incentives. A strong storage market can also be built over time by offering rebates, loans, investment grants, tax credits or other financial incentives.

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