Clean Energy Cost-Savings: A Study of Mexico’s Federal Electricity Commission

11/19/2021; 58 minutes

In September, the Lopez Obrador administration sent an initiative to Congress aimed at amending the constitution and completely restructuring the electric sector and market. The administration has set forth specific criticisms of the prevailing market structure, particularly with regards to the Comisión Federal de Electricidad (CFE). The Institute of the Americas authored white paper, "Clean Energy Cost-Savings: A Study of Mexico's Federal Electricity Commission (CFE)," provides an assessment of the impacts both in terms of CFE's financial outlook and emissions profile. The purchase of clean energy through the auctions in order to obtain the corresponding CEL certificates has allowed CFE to avoid variable generation costs at its thermoelectric plants, which would have been far higher than the cost of purchasing the clean energy. Indeed, the amount saved can be estimated based on fossil fuel use avoided and cost of the emissions that would have been generated, as we review in detail. Recorded on 11/18/2021. (#37621)

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