Mexico is advancing a structural transformation of its electricity market with the publication of new provisions by the National Energy Commission (CNE) and procurement mechanisms from the National Centre for Energy Control (CENACE), which position energy storage as a key asset for system reliability.
Published on 3 April 2026, these measures respond to growing pressure on electricity demand—driven, among other factors, by data centres—and to structural limitations within the system.
The new scheme allows CENACE to procure Energy, Capacity and Associated Products from both power plants and private energy storage systems, creating a dynamic model based on demand forecasts, weather conditions and operational contingencies.
Claudio Rodríguez Galán, Co-Head of the Latin American Practice Group at DWF, noted: “We identify an interesting level of administrative flexibility aimed at supporting the timelines and requirements needed to achieve such reliability. This flexibility is evident, necessary and welcome.”
One of the most relevant developments is the incorporation of operational flexibility mechanisms, such as temporary interconnection and the figure of a temporary market participant, which enable faster entry of new capacity.
According to Rodríguez Galán, “temporary interconnection is allowed after the registration of interest”, reducing initial barriers for projects under development.
At the same time, the new economic model introduces the concept of a single price (precio monómico), which integrates all costs into a single bid and reshapes project revenue structures.
However, the new framework also raises concerns regarding investment, particularly due to the transfer of risks to the private sector. Rodríguez Galán warned that “there are elements that could affect the appetite of Power Generation Units or Energy Storage Systems to participate”, introducing uncertainty into market development.
Among the main challenges is the absence of incentives such as Clean Energy Certificates (CELs), which limit additional revenue potential for storage projects.
This is compounded by a rigid contractual framework that restricts the ability to manage macroeconomic risks.
According to the executive, “changes in economic conditions, exchange rates or fuel unavailability cannot be claimed as force majeure”, increasing developers’ financial exposure.
The model also establishes that the private sector assumes full technical, legal and operational responsibility, consolidating a scheme where risk lies almost entirely with investors. In the specialist’s words, “legal acts and guarantees are the responsibility of the private party, with no liability for CENACE”, redefining the sector’s risk-return balance.
Additionally, the requirement for guarantees of around 100,000 pesos per MW and the setting of single, fixed and invariable prices throughout the contract duration introduce rigidities that affect project bankability.
In parallel, CNE provisions establish a comprehensive framework for the integration of Electrical Energy Storage Systems (SAEE), redefining their role within the electricity system and their interaction with the market.
Under this new approach, storage is no longer treated as an extension of power generation but gains its own regulatory identity, marking a structural shift in its market participation. Following this redefinition, it is no longer mandatory to channel operations through a generating plant; instead, a specific entity—the storage operator—is introduced as a regulated participant capable of interacting directly with the system.
This redesign also introduces a differentiated permitting scheme that distinguishes between associated and non-associated configurations, providing greater clarity for project development. While systems linked to power plants or load centres do not require additional independent authorisations, standalone systems must comply with specific requirements.
At the same time, the regulation reorganises and expands participation models, incorporating more flexible schemes aligned with technological evolution in the sector. In this context, self-consumption becomes a central figure—replacing previous schemes such as self-supply—alongside the possibility of developing storage in aggregated configurations, within grid infrastructure, or as energy backup mechanisms.
This approach enables a broader diversity of operational models, ranging from decentralised solutions for large consumers to more complex system optimisation schemes, significantly expanding the scope of storage in the country.
Moreover, in certain cases, storage is recognised as part of strategic electrical infrastructure, particularly when integrated into transmission and distribution networks, implying operation under state control and outside the wholesale electricity market logic.
Finally, the framework allows for the joint implementation of storage systems among different participants under specific conditions of location, operation and responsibility, introducing new collaborative development alternatives.
In this context, storage emerges as a strategic asset for Mexico’s energy transition, providing flexibility, backup and stability to the electricity system, particularly in scenarios of high renewable penetration. The regulation even contemplates its mandatory integration in certain cases to mitigate variability.
From a technical perspective, the new guidelines impose stringent parameters on capacity, power, response times and operational performance, as well as compliance with international standards, raising the threshold for market entry.
Thus, the new framework sets up a central tension for the sector: while it seeks to address urgent reliability needs and modernise system operations, it also redefines investment conditions in a balance where regulatory certainty and economic viability will be decisive for the future of energy storage in Mexico.
