Controversy Over Combined Cycle in CELs

CRE issued an agreement that sparked controversy regarding green energy, as it categorizes natural gas generation in combined-cycle power plants as fuel-free energy, thereby approving it for Clean Energy Certificates (CELs). While the move is intended to promote cleaner energy sources, critics argue that it may artificially inflate the proportion of clean energy in the electricity system.

CELs were introduced in 2014 as part of the government's efforts to drive the decarbonization of the energy sector and increase the share of non-fossil fuel electricity from 20% in 2018 to 35% by 2024. Over the years, the program has imposed annual incremental obligations on energy consumers to encourage the adoption of cleaner energy technologies. However, natural gas combined-cycle generation was initially overlooked as a recognized technology for reducing greenhouse gas emissions.

The recent decision by CRE to include natural gas generation in combined-cycle power plants within the scope of CELs has triggered concerns within the industry. The Mexican Solar Energy Association (ASOLMEX) and the Mexican Wind Energy Association (AMDEE) have raised objections, asserting that this inclusion may not accurately reflect the true carbon footprint associated with such generation methods. They argue that considering natural gas as fuel-free energy and awarding CELs could undermine the integrity of the program and lead to an artificial inflation of the clean energy share in the electricity system.

ASOLMEX and AMDEE have emphasized the importance of maintaining transparency and ensuring that the certification process aligns with the original goal of reducing greenhouse gas emissions. They call for a thorough reassessment of the criteria used to determine eligibility for CELs, particularly in the case of natural gas combined-cycle generation.

While proponents of the decision argue that natural gas is a relatively cleaner fossil fuel option compared to coal or oil, critics believe that it should not be equated with truly renewable energy sources such as solar and wind power.