IMCO Raises Concerns Surrounding AI in Clean Energy Generation

The Mexican Institute for Competitiveness (IMCO) stated that the Program for the Development of the National Electric System (PRODESED) 2023-2037 artificially increased clean energy generation figures, reported Milenio. 

On May 29, SENER published the new PRODESEN, a guiding document that incorporates projections for electricity demand growth in Mexico, new generation capacity and instructions for investments in transmission and distribution networks to ensure the reliability of the National Electric System (SEN). IMCO stated that, despite reaffirming the Mexican government's commitment to energy transition, PRODESEN aims to achieve clean generation goals through regulatory modifications instead of providing a credible critical path to increase the share of renewable energy in the country's energy matrix.

"The methodological changes resulted in an increase in clean generation in 2022. PRODESEN indicates that 31.2% (106,171GWh) of the total electric energy generated in Mexico in 2022 (340,713GWh) was clean," stated IMCO. However, the institute clarified modifications approved by CRE were employed, which consider a portion of the energy generated by combined-cycle power plants as clean. Without these changes, clean energy generation would be at 28.7%, indicating a second consecutive year of not meeting the target of generating 30% of energy from clean sources by 2021. Moreover, IMCO emphasized the need for Mexico to accelerate the deployment of renewable energy projects through generation and interconnection permits to achieve decarbonization goals and attract industries seeking emission reductions, such as electric mobility.

“PRODESEN 2023-2037 reflects the Mexican government's need to fulfill its commitment to generate 35% of electricity from clean sources by 2024. With less than a year remaining, the infeasibility of achieving this goal is evident, a consequence of four years of obstacles to renewable generation projects in Mexico,” added IMCO. 

The institute said there is a high probability that the new methodology will be litigated in courts and possibly invalidated. “Changing regulations does not change reality, which is that Mexico has not increased its renewable generation capacity at the pace demanded by global trends and its own commitments.”