Mexico Reforms Distributed Energy Generation
Mexico’s Energy Regulatory Commission has launched consultations on amendments to regulations governing distributed generation. The most significant change is the formal inclusion of energy storage systems in the legal framework. Until now, regulations focused primarily on electricity generation, largely overlooking battery systems.
New definitions and capacity limits
The draft amendment addresses several technical issues that previously caused interpretational uncertainty. While the general threshold for distributed generation remains at 500 kW, the new rules precisely define:
- Methods for measuring installed capacity (distinguishing between DC and AC power).
- Criteria for classifying hybrid systems.
- Rules for settling electricity injected into the grid from installations equipped with energy storage systems.
- Updated technical terminology reflecting modern demand‑side management technologies.
Stricter connection requirements and grid stability
The regulator is introducing more detailed grid‑connection procedures while strengthening requirements related to system impact assessments. Compared to the existing, more general rules, the draft regulations impose an obligation on investors to conduct more in‑depth technical analyses.
Although this increases documentation requirements, the changes are intended to enhance grid stability amid the rapidly growing number of micro‑installations, while simultaneously reducing procedural uncertainty for investors and system operators.
Part of a broader energy strategy
The reforms align with Mexico’s broader energy policy. President Claudia Sheinbaum recently presented the National Electricity System Expansion Plan for 2025–2030, which предусматривает:
- The addition of 13.02 GW of new generation capacity.
- The development of nine photovoltaic projects totaling 4.67 GW.
- Construction of seven wind farms with a combined capacity of 2.47 GW.
- Renewable energy investments exceeding USD 8 billion.
The new regulatory framework for smaller installations is designed to support the realization of these ambitious objectives.