The constitutional reform approved at the end of 2013 and the associated secondary legislations adopted in August 2014 and 2015 provide for a fundamental transformation of Mexico’s energy sector. On the basis of those legislative changes Mexico created a wholesale power market with a system of capacity and power auctions in which renewable energy technologies can take part and are additionally supported by Clean Energy Certificates (CLEs).

1. Ingeniería de la energía
Isabel Lascurain Gutiérrez
Clean Energy Certificates
Anier Isabel Peña Fajardo
Lizbeth Martínez Patatuchi
Jorge González Esquinca
1

2. Index
Introduction
The constitutional reform approved at the end of 2013 and the associated
secondary legislations adopted in August 2014 and 2015 provide for a fundamental
transformation of Mexico’s energy sector.
On the basis of those legislative changes Mexico created a wholesale power market with a
system of capacity and power auctions in which renewable energy technologies can take
part and are additionally supported by Clean Energy Certificates (CLEs).
Objectives
During this document we’re going to learn about the next topics:
• Establish requirements
• Encouraging the development
• Promote new investments in clean energy
• Allow the national goals of efficience
Index 2
Introduction 2
Objectives 2
How do they work? 3
Characteristics 3
Process to get a CEL 4
How do you get one? 4
Mexico renewable energy 5
Conclusion 6
References 6
2

3. How do they work?
The Electric Industry Act (LIE) defines in Article 3, section VIII, Clean Energy
Certificates (CELs) as the title issued by the Energy Regulatory Commission (the
Commission) that accredits the production of a determined amount of energy Electricity
from Clean Energies and that serves to fulfill the requirements associated to the
consumption of the Centers of Charge.
A CEL covers the generation of 1 MWh of clean electric energy.
Characteristics
Since the CEL is a market instrument, its price is not fixed, but depends on supply
and demand; Market Participants may submit offers to sell CEL at any price, as well as
submit offers to buy CEL at any price. The purchase and sale may be made through the
CEL Market which will be organized at least once a year by CENACE, and may also be
freely traded through Bilateral Agreements or Long Term Auctions.
The following are some characteristics about CEL certifications:
• The government determines the requirements for CELs on a yearly basis three years in
advance of the compliance period.
• The first compliance period will be in 2018 with quota set at 5% level.
• All clean energy generators, defined as power plants using clean energies, developed
after August 2014 will receive 1 CEL/MWh generated.
• Certificates will be issues to the generators for period of 20 years.
• Clean energy certificates are bankable and do not expire.
• Penalty for non-compliance is between USD 30-250/MWh.
• The certificates can be purchased and sold, under monitoring of the regulatory
commission of energy.
• Up to 6 million of the certificates will be awarded in the first auction via 20-year contracts
that seek to produce up to 2,500 MW of additional power generation from clean energy
sources.
3

4. Process to get a CEL
They will be granted within the System of Management of Certificates and
Compliance of Clean Energies (the System). The participants of the System must be
registered within the System in order to be able to receive the CEL or to liquidate or cancel
their obligations. To participate in the system they must:
• Apply for enrollment in the System.
• Have certification by a unit accredited by the CRE that the Power Plant generates
electricity from clean energies.
• Pay the rights to registered in the System.
The Commission will use the System to carry out the management and registration of the
information associated with the generation and consumption of electricity, the emission,
transactions between participants, and the verification of compliance with Clean Energy
obligations.
The following is a schematic illustrating the procedure for receiving CEL.
Image 1: Schematic illustrating the procedure for receiving CEL. http://www.gob.mx/cre/articulos/
preguntas-frecuentes-sobre-los-certificados-de-energias-limpias
How do you get one?
1. Participants in the electricity sector.
2. They can be bought by large consumers and residential suppliers, as CFE.
3. Electrical generators whose operation began after August 2014
4. Before August 2014 and have increased electricity generation by clean
energy.
5. Apply for registration.
4

5. 6. Have CRE certification for Electrical Central.
7. Pay for Registration rights.
8. Monthly/annual statement
Mexico renewable energy
The renewable energy market in Mexico is currently shaped by the General Law on
Climate Change, published on June 6 2012. The law affirmed Mexico’s intent to increase
electricity generated from clean energy sources, including nuclear energy, to 35 percent by
2024 and 50 percent by 2050; and set a national goal to reduce greenhouse gas
emissions by 30 percent by the end of the decade. Additionally, the Mexican renewable
energy market has improved as a result of the energy reforms passed into law in August
2014. The reform package was largely designed to facilitate private investment, both
foreign and domestic, in oil and gas development. Additionally, the law is expected to
positively impact Mexico’s entire power sector, including electricity, with special focus on
renewables, due to Mexico’s commitments to climate change as expressed on the
intended National Determined Contribution (INDC) that Mexico submitted in at the COP 21
held in Paris in 2015.
The energy reform was not only designed for the oil and gas sector, but also to liberalize
the electricity generation market; to open future development to private firms; and to create
competition among energy producers. Previously, the majority of Mexico’s electricity was
generated by the Federal Electricity Commission (CFE), Mexico’s state-owned utility
company. The reform package created an independent grid operator (CENACE) who
controls a new, wholesale market and enables customers to purchase power directly from
producers. The creation of CENACE has established an independent power producer
(IPP) market for the first time in Mexico.
The energy reform also mandates the creation of a clean energy certification scheme
which will be administered by Mexico’s Energy Regulatory Commission (CRE). This
scheme is known as Clean Energy Certificates (CELs)) and its objective is to establish
requirements to use a percentage of clean energy in the power generation projects. It will
be the primary mechanism for encouraging the development of clean energy capacity.
Clean Energy Certificates are also an instrument to promote new investments in clean
energy and allow the national goals of efficiently generating clean energy at the lowest
cost for the country to become individual goals.
5

6. Conclusion
It is important to know the different certifications of energy that exist and what we
can do to obtain them, as well as to encourage Mexican companies to obtain these
certifications to improve industrial performance and raise awareness about the
environmental benefits that can be created from small Changes.
References
PUBLIC POLICY AND OPPORTUNITIES OF INVESTMENT ON CLEAN ENERGIES IN
THE FRAMEWORK OF THE ENERGY REFORM OF MEXICO. EFRAÍN VILLANUEVA
ARCOS GENERAL DIRECTOR OF CLEAN ENERGY MINISTRY OF ENERGY, MEXICO.
NOVEMBER 9TH, 2015. http://mexiko.ahk.de/fileadmin/ahk_mexiko/solarenergie_2015/
presentaciones/3._SENER_Efrain_Villanueva_A..pdf
export.gob. Mexico - renewable energy. https://www.export.gov/article?id=Mexico-
Renewable-Energy
Comisión Reguladora de Energía. Preguntas Frecuentes sobre los Certificados de
Energías Limpias. 18 de agosto de 2016. http://www.gob.mx/cre/articulos/preguntas-
frecuentes-sobre-los-certificados-de-energias-limpias
Roberto Rodriguez Labastida. Mexico’s Power Market Moves Ahead. February 22, 2016.
https://www.navigantresearch.com/tag/clean-energy-certificate
6