In Mexico, Smart Grid development will be closely linked to the growth of renewable energy resources. There are two reasons for this close link. First, the Smart Grid will enable the integration of much larger amounts of variable generation resources like wind and solar generation. Second, new responsibility for the Smart Grid and for approval of renewable projects is posited in the same agency – CRE. For these reasons, the reader will find references to CRE’s role in developing mechanisms for expanding renewable energy resources woven into the discussion of the agency’s responsibilities for the Smart Grid.

The objective of this project was to develop a regulatory framework for a path to regulate the electric sector in the presence of Smart Grid. In establishing the Framework the ESTA/CRE team performed the following key activities:

• Initial assessment of the Mexican power sector and the potential for implementation of Smart Grid in view of international Smart Grid Experiences
• Developed a Smart Grid Regulatory Roadmap
• Assessed opportunities recommended activities to attract private Investment
• Conducted a preliminary environmental and development impacts study
• Perform economic analysis and developed preliminary implementation plan
• Identify sources of implementation financing