Why are electricity rates fluctuating in Mexico?

In recent years, Mexico has experienced fluctuations in electricity rates due to a variety of factors, including changes in government policy, shifts in energy production methods, and global market trends. The country's energy sector has been undergoing significant reforms aimed at increasing competition and reducing costs for consumers.

What happens if I exceed my monthly consumption limit in Mexico?

However, if your average monthly consumption exceeds this limit consistently, you’ll lose the subsidy and move into a category called Domestic High Consumption (DAC). This DAC rate is significantly higher and will sharply increase your electric bill. Each region in Mexico has its own subsidy limits based on local climate conditions.

Should electrical energy storage systems be used in long-term power auctions?

As being generally technology-agnostic, the use of Electrical Energy Storage Systems (EESS) within the long-term power auctions was neither explicitly encouraged nor discouraged. This analysis assumes that the EESS, more specifically the BESS, would be part of a solar PV plant.

How does the DAC rate work in Mexico?

Each region in Mexico has its own subsidy limits based on local climate conditions. For example, in the central highlands, where temperatures are mild, the limit is lower, while hotter regions like the coast allow higher usage limits. If you consistently go over these limits, you enter the DAC rate.

Is electrical energy storage system use case a source of revenue?

An Electrical Energy Storage System use case for the capacity component only exists if a capacity component was awarded in the auctions. Therefore, no revenue can be generated from the results of the 2015 auctions due to a lack of awarded capacity bids. However, capacity is a possible source of revenue from the 2016 and 2017 auctions.

How much does a power plant cost per MW?

This value is in line with typical market conditions worldwide, where the contracted operation of such services is typically between 150,000 USD and 400,000 USD (3 to 8 million MXN) per MW and year.