On April 29, 2020, the National Center of Energy Control (“CENACE”) released an administrative resolution (the “Resolution”) to guarantee the efficiency, reliability, quality, continuity and safety of the Electric National System due to the pandemic disease COVID-19.

As per the referred Resolution, CENACE communicated all participants of the Whole Sale Electric Market diverse technical and operative measures considered necessary as to guarantee the electric supply in Mexico.

Among the most relevant measures taken by CENACE are:

1. As of May 03, 2020, pre-operative tests applicable to wind and photovoltaic intermittent power plants in commercial operation process will be suspended. For those that have not begun, pre-operative test will not be authorized.
   
   
2. For isolated electrical interconnection systems integrated to wind and photovoltaic intermittent power plants, operative actions and strategies will be applied to strengthen the sufficiency, quality and efficiency of the electric supply.
   
   

If the measures issued by CENACE are applied, photovoltaic and wind power plants already developed or under construction would not:

(i) be able to commercially operate; and

(ii) participate in the Wholesale Electric Market.

It is worth noting that the Resolution referred herein has caused controversy among the industry.

The lawyers of the energy and infrastructure area at firm are available for any questions or comments on the above.

Juan Carlos Serra
serra@basham.com.mx

Jorge Eduardo Escobedo
jescobedo@basham.com.mx

Miguel Figueroa
mfigueroa@basham.com.mx

Pedro Reynoso
preynoso@basham.com.mx