Brattle Experts Discuss the Impact of a Recent Energy Regulatory Commission Agreement on the Clean Energy Certificate Market in Mexico

Principal Veronica Irastorza and Associate Carlos Molina recently authored an article in Energía a Debate on a recent agreement from the Energy Regulatory Commission (CRE), which significantly impacts the market of Clean Energy Certificates (CELs) in Mexico.

The CELs were created to promote investment in clean energy sources, transforming national clean energy-based electricity generation goals into individual obligations. The CRE agreement has a significant impact on the CELs market because it automatically increases the amount of energy that can be considered clean – and, therefore, subject to receiving CELs – without increasing investment or deployment of new generation capacity. The supply of CELs would increase by 34%, which would cause their prices to fall and reduce the attractiveness of investment in renewable energies.

The full article, “With a Stroke of a Pen, Increase in CELs but Far from the Transition,” is available below.