EMBRACING CHANGE WHILE CREATING A NEW MARKET: A VIEW ON DISTRIBUTED GENERATION

When power markets first opened to competition in the nineties, no regulator could have imagined the challenges these markets face today. Distributed generation and storage were seen as promising technologies, but few believed in their comercial potential, so there was no reason to worry about their impact on generation, transmission, distribution, and supply. However, falling prices of solar photovoltaic modules and batteries have changed the picture completely. Practically all regulators in the world now face the need to reshape their regulatory framework to accommodate these new technologies without jeopardizing the revenue flows of transmission, distribution, or base load technologies, still needed to maintain the system's balance.

In this article, the authors discusses the main concerns and outcomes faced by the Mexican regulator in the process of drafting a comprehensive Distributed Generation regulation, with the purpose of contributing to the global debate on how to integrate and cope with distributed energy in the electricity markets of the future.

1 What is Distributed Generation?

2 Net versus Gross Charging

3 International Experience

4 DG Payments in the UK: Continued but Reduced

5 Takeaways from Australia

6 Back to the Mexican Case: Is Asset's Ownership Relevant?

7 Embracing Change to Move into the Future

8 Bibliography