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Mexico increases grid connection fee for some renewable power projects

The Mexican government has decided to raise the grid connection fee for renewable power plants installed under the "Contratos Legados" regulatory framework that was in place until the 2013 energy reforms. The grid connection fee for renewable power plants connected to the low-voltage network will increase nine-fold, from MXN0.09799/kWh (US$0.44c/kWh) to MXN0.89284/kWh (US$4c/kWh), while that for power plants connected to the medium-voltage grid will increase fivefold, from MXN0.049/kWh (US$0.22c/kWh) to MXN0.25865/kWh (US$1.16c/kWh). The connection fee will also increase fivefold for plants connected to the high-voltage grid, from MXN0.049/kWh (US$0.22c/kWh) to MXN0.27857/kWh (US$1.26c/kWh). The tariff increase will mainly affect wind and other renewable installations, since most of the solar PV capacity installed in Mexico was added after the 2013 reforms.

In early May 2020, the National Energy Control Center (CENACE) introduced restrictions on renewable capacity development and halted grid connections for new wind and solar power projects indefinitely, citing provisions to preserve the national energy security during the COVID-19 pandemic. In late May 2020, some operators of large-scale renewable power plants that had initiated lawsuits against this measure were allowed to resume test operations.

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