May 2014 – Sep 2017
21st Century Power Partnership Mexico
Mexico – Latin America
To provide technical support to enable the Government of Mexico to coordinate, accelerate and institutionalise the development of smart grids in Mexico.
$4,221,041 Multi-Year Grant Value
Governments of Germany and Denmark (aligned funders)
The programme funds a technical support platform, the 21st Century Power Partnership (21CPP), to provide world-class technical and regulatory advice on clean energy system management and smart grid implementation to support Mexico’s power system transformation.
This programmes focuses on supporting power system transformation by providing capacity and technical assistance to address critical challenges facing policymakers, regulators, and system operators.
This assistance provided by 21CPP Mexico includes:
- tailored research
- expert exchanges
- connecting experts such as those working for regulators, utilities and grid operators
- running best practice workshops
- providing power system modelling support
- developing power system transformation roadmaps
- creating knowledge-sharing opportunities with other countries
To date, the 21CPP has supported processes relating to the Smart Grid Roadmap, and the establishment of the Market Monitoring Unit in Mexico; as well as planning for implementation of Paris commitments and the NDC.
21CPP Mexico is a Clean Energy Ministerial initiative. It is led by the US Department of Energy’s National Renewable Energy Laboratory (NREL) and the Joint Institute for Strategic Energy Analysis (JISEA) and carried out in cooperation with government and local stakeholders, drawing upon an international community of power system expertise.
A shift in Mexico’s power sector will provide an essential foundation for achieving a potential reduction in emissions of 60 million tonnes of carbon dioxide equivalent per year in 2020 and 130-155 million tonnes of carbon dioxide equivalent per year in 2030.
Since the start of the investment, Mexico has made some institutional progress towards increased penetration of renewables. It has created an effective regulatory and planning framework, improved its technical capacity, and has some key aspects of a functioning energy market in place, including a market monitoring unit, market rules, and smart grid roadmap.
Two recent energy auctions highlight the increased competitiveness of renewable energies in Mexico. The lowest bid for solar set a new record low for solar energy in Latin America. These auctions supplied are estimated to have helped Mexico achieve at least 25% of the renewable energy capacity required under its 2024 renewable energy target.