The Status and Outlook of Distributed Generation Public ...

1 Contract No. DE-AC36-08GO28308 Technical Report NREL/TP-6A50-71469 May 2018 The Status and Outlook of Distributed Generation Public policy in mexico Owen Zinaman, Alexandra Aznar, and Francisco Flores-Espino National Renewable Energy Laboratory Alejandro Tovar Garza Independent Consultant NREL is a national laboratory of the Department of Energy, Office of Energy Efficiency & Renewable Energy, operated by the Alliance for Sustainable Energy, LLC. Contract No. DE-AC36-08GO28308 National Renewable Energy Laboratory 15013 Denver West Parkway Golden, CO 80401 303-275-3000 The Status and Outlook of Distributed Generation Public policy in mexico Owen Zinaman, Alexandra Aznar, and Francisco Flores-Espino National Renewable Energy Laboratory Alejandro Tovar Garza Independent Consultant Suggested Citation Owen Zinaman, Alexandra Aznar, Francisco Flores-Espino, and Alejandro Tovar Garza.

2 2018, The Status and Outlook of Distributed Generation Public policy in mexico . Golden, CO: National Renewable Energy Laboratory. NREL/ TP-6A50-71469. Technical Report NREL/TP-6A50-71469 May 2018 NOTICE This report was prepared as an account of work sponsored by an agency of the United States government. Neither the United States government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights.

3 Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States government or any agency thereof. This report is available at no cost from the National Renewable Energy Laboratory (NREL) at Available electronically at SciTech Connect Available for a processing fee to Department of Energy and its contractors, in paper, from: Department of Energy Office of Scientific and Technical Information Box 62 Oak Ridge, TN 37831-0062 OSTI Phone: Fax: Email: Available for sale to the Public , in paper, from: Department of Commerce National Technical Information Service 5301 Shawnee Road Alexandria, VA 22312 NTIS Phone.

4 Or Fax: Email: Cover Photos by Dennis Schroeder: (left to right) NREL 26173, NREL 18302, NREL 19758, NREL 29642, NREL 19795. NREL prints on paper that contains recycled i This report is available at no cost from the National Renewable Energy Laboratory (NREL) at Acknowledgements The authors would like to thank Tel sforo Trujillo Sotelo (SENER), Edmundo Gil Borja (SENER), Fidel Carrasco Gonzalez (CRE), and Efra n Villanueva Arcos (SENER) for their input and review of this work. We would also like to thank reviewers Jason Coughlin (NREL), Riccardo Bracho (NREL), and Jeffrey Logan (NREL) for their feedback.

5 Lastly, the authors thank Britton Marchese (NREL) and Douglas Gagne (NREL) for their editorial support. Any remaining errors are the responsibility of the authors. ii This report is available at no cost from the National Renewable Energy Laboratory (NREL) at Acronyms and Abbreviations 21 CPP 21st Century Power Partnership ANCE Asociaci n de Normalizaci n y Certificaci n ANES Asociaci n de Energ a Solar (Solar Energy Association) ASOLMEX Asociaci n Mexicana de Energ a Fotovoltaica (Mexican Photovoltaic Energy Association) BNEF Bloomberg New Energy Finance CELs Certificados de Energ as Limpias (clean energy certificates)

6 CeMIE Sol Centro Mexicano de Innovaci n en Energ a Solar (Mexican Center for Solar Energy Innovation) CENACE Centro Nacional de Control de Energ a (National Center for Energy Control) CFE CFE Distribuci n (CFE Distribution) CONOCER Comit T cnico del Consejo Nacional de Normalizaci n y Certificaci n de Competencias Laborales (National Council for Workforce Certification Technical Committee) CONUEE Comisi n Nacional para el Uso Eficiente de la Energ a (National Commission for Energy Efficiency) CRE Comisi n Reguladora de Energ a (Energy Regulatory Commission) DAC (Tarifa) Dom stica de Alto Consumo (High consumption rate) DG Distributed Generation DSIRE Database of State Incentives for Renewables & Efficiency DTI South African Department of Trade and Industry FATERGED Financiamiento para Acceder a Tecnolog as de Energ as Renovables de Generaci n El ctrica Distribuida ( Financing to Access Distributed Renewable Energy Technologies) FIDE Fideicomiso para el Ahorro de Energ a El ctrica (Trust for Energy Conservation)

7 FIRCO Fideicomiso de Riesgo Compartido (Shared-risk Trust) FOTEASE Fondo para la Transici n Energ tica y el Aprovechamiento (Energy Transition Fund) GEF Global Environmental Facility GHG greenhouse gas GIZ German Technical Cooperation GTM Greentech Media ICM Iniciativa Clim tica de M xico (Mexican Climate Initiative) IFC International Finance Corporation INFONAVIT Instituto del Fondo Nacional de la Vivienda para los Trabajadores (Mexican Federal Institute for Worker s Housing) IREC Interstate Renewable Energy Council iii This report is available at no cost from the National Renewable Energy Laboratory (NREL) at ITC Investment Tax Credit LTE Ley de la Transici n Energ tica (Energy Transition Act)

8 NCS National Competence System NEM net energy metering NMX Mexican Norm NOM Official Mexican Norm NREL National Renewable Energy Laboratory NYSERDA New York State Energy Research and Development Authority PACE property-assessed clean energy PCG Partial Credit Guarantee PETE Programa Especial de la Transici n Energ tica (Special Program for the Energy Transition) PPA power purchase agreement PREI Programa de Redes El ctricas Inteligentes (Smart Grid Program) PRODESEN Programa de Desarrollo del Sistema El ctrico Nacional (National Electric System Development Program) ProSolar Programa de Fomento de Sistemas Fotovoltaicos (Program for the Promotion of Photovoltaic Systems) RECS renewable energy certificates REIPPPP Renewable Independent Power Producer Procurement Programme (in South Africa) RES LEGAL Legal Sources on Renewable Energy RGD Red general de distribuci n (General distribution networks)

9 RMI Rocky Mountain Institute RPS renewable portfolio standards SAGARPA Secretar a de Agricultura, Ganader a, Desarrollo Rural, Pesca y Alimentaci n (Secretariat of Agriculture, Livestock, Rural Development, Fisheries and Food of mexico ) SE Secretar a de Econom a (Secretariat of Economy) SEIA Solar Energy Industries Association SENER Secretar a de Energ a de M xico ( mexico s Ministry of Energy) SEP Secretar a de Educaci n P blica ( Public Education Ministry) SME small- and medium-scale enterprises SREC Solar Renewable Energy Credit TOU time-of-use rate iv This report is available at no cost from the National Renewable Energy Laboratory (NREL) at Executive Summary Recent clean energy reforms are rapidly transforming mexico s energy landscape as mexico pursues its goals of generating 35% of its electricity from clean energy by 2024 and reducing greenhouse gas emissions by 22% by 2030.

10 As part of these goals, clean Distributed Generation is slated to play a meaningful role in mexico s energy landscape and is a key priority for policymakers. This report provides insight into the dynamic Distributed Generation landscape in mexico and is intended to guide discussions on Distributed Generation policy options. As of June 30, 2017, Distributed Generation deployment in mexico reached a cumulative 304 MW and was comprised mostly of PV systems (CRE, 2017). However, a gap remains in reaching mexico s near-term goal of 527 MW of clean Distributed Generation deployment by 2018, which has sparked multiple Public policy discussions in mexico .