Potential Impacts of the Reform to the Electricity Industry Law in the Energy Dispatch of the Mexican Wholesale Electricity Market

This paper shows the potential impacts that the modifications made to the Electricity Industry Law (LIE) would have on the economic dispatch, depending on alternative ways to interpret those changes. Using a simple dispatch model, an attempt is made to capture the essential characteristics of the generation dispatch carried out by the Market Operator in Mexico to show the impacts that the adoption of the changes established in the modification to the LIE would have on the dispatch mechanism.

I. Introduction

Until mid-2014, the electricity sector in Mexico had a monopoly model, where a single company, the Federal Electricity Commission (CFE, for its acronym in Spanish), produced, transmitted, distributed, and supplied electricity and other services to the end users [1]–[2].