ILPC 2027

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Author: Natalia Rocha Lawton

Social and employment implications of renewable distributed generation in Mexico

 

Dr. Natalia Rocha Lawton

Coventry University

 

            After the Energy Reform in Mexico[1], most of the attention of the energy policies has placed on the oil and gas industries; the reform of the electricity sector was one of the last to be carried out.  These new arrangements follow a mixed model where the private capital have the opportunity to invest in generation, the state maintains control of the national electricity system, public service networks of the transmission and distribution throughout the Federal Power Commission (CFE). In this way, the CFE is in the process of restructuring its functions in order to reduce costs, increase productivity, efficiency of the electricity system, to contribute to mitigate greenhouse emissions, lowering electricity rates to reduce public spending to promote the growth of the manufacturing sector to be more competitive at national and international levels[2].

This new private-public State ownership relationship will require new public policies that contribute to establish a more direct dialogue and promotion of innovation among the generators, distributers, customers, consumers and employees. Thus, the technological cooperation/collaboration, sharing good practices and competition among the companies that integrate the generation network will be fundamental to contribute to reduce the carbon emissions  and transform the institutions, work and the broader society.

This paper proposes the analysis of the literature about the changes in the electricity sector of the national and other international contexts to identify and evaluate best practices and compare them with the changes that have being experienced in the electricity sector as a result of the Energy Reform.  The purpose of this research is to understand the new rules of operation of the electricity market that aim to help both, economic efficiency in the delivery of energy services (Pollitt, 2008) of the companies and more participation of the society of its electricity network throughout the distributed generation of renewable energies.

The paper will focus on two areas: 1) Implications of Energy Regulation. Development of standards in technical regulation to promote the development of renewable distributed generation systems; 2) New forms of Employment. Development of business, new technologies, technical skills, self employment, unemployment and consumers.

 



[1] Mexico has promoted a deep transformation of its state monopolies in the energy sector. As Lajous said "The constitutional amendments of December 20, 2013 establish new industry structures in oil, natural gas, and electricity. Competition will be introduced in refined product and electricity markets, and private investment will flow into various segments of these industries." Also, the state will maintain ownership of Energy companies, in this case the Federal Power Commission (CFE) (Lajous, 2014); Diario Oficial de la Federación 20/12/ 2013.

[2] After the energy Reform, Mexico has increased the opportunity for integration in the Latin American and North American energy markets with the USA and Canada via the North American Free Trade Agreement NAFTA. Those agreements will pressure for significant restructuring of Mexico’s energy sector in this case, to support the Renewable Energy.