—Mexico is undergoing a process of significantstructural changes in the energy sector, in particular in theelectric power sector, such as the restructuring of power markets;increasing emphasis on socio-economic and environmentalimpacts of the electric power system; and consideration of anhigher role of energy technologies compatible with sustainabledevelopment. Traditional industry framework has been exposedto new market structures and greater competition, both of whichare being introduced by changing regulations on who cangenerate, transmit, distribute and sell electricity. At present,Mexico’s power industry is changing to a competitive integratedmodel. One area in which there is particular interest is thepotential for increased cross-border trade in electricity betweenMexico and the United States (US) and very recently betweenMexico and Central America (CA). Such an increase wouldprovide environmental and economic benefits to all countries,which of course is the primary reason for engaging in trade. Thispaper describes the recent developments on international powergrid interconnections in Mexico with the US and CA.
—Asynchronous Interconnections, InternationalPower Grid Interconnections, Synchronous Interconnections.
VER the last few years many electric utilities in the worldhave started implementing important changes in their organization in order to promote efficiency and improve their financial situation .Most of the changes in the power industry are related tothe introduction of competition and disaggregation of electricservices . The unbundling of generation, transmission anddistribution has altered the nature of traditional planning andoperation approaches used by the vertically integrated utility.In Mexico, the electric sector has been undergoing a process of deregulation since 1993 , , , , and ,where the power industry is changing to a competitiveintegrated model.The generation of electric energy has been opened to private investment for external (i.e. non-utility) production,through the ownership, design, construction, maintenance and
Miguel Angel Avila Rosales is retired from Comision Federal deElectricidad, Mexico (e-mail:firstname.lastname@example.org).
Hector G Sarmiento is with Gerencia de Transmision y Distribucion,Instituto de Investigaciones Electricas, Mexico (e-mail:email@example.com). Allthe ideas, conclusions and statements in this paper represent individual positions and by no means should be associated to the Comision Federal deElectricidad.
operation of power plants. So far a large portion of thegeneration capacity additions required to face future loaddemand has been met by non-utility generators .One area in which there is particular interest is the potentialfor increase cross-border trade in electricity between Mexicoand the United States (US) and very recently between Mexicoand Central America (CA). Such an increase would provideeconomic benefits to all countries, which is of course the primary reason for engaging in trade , , , , and.Moreover, it could also generate substantial environmental benefits--in terms of reduced emissions of global pollutantssuch as carbon dioxide and regional pollutants such as sulfur oxides and nitrogen oxides--depending on the composition of available capacity (the mix of renewable and fossil-firedgeneration resources), the size and direction of the energyflows, and the time frame under consideration.Electricity industry restructuring is based in part on theassumption that transmission systems should be flexible,reliable and open to all exchanges no matter where thesuppliers and consumers of energy are located and who theyare. However, neither the existing transmission systems nor itsmanagement infrastructure can fully support this openexchange ,  and .This paper describes the recent developments oninternational power grid interconnections in Mexico with theUS and CA.II.
CURRENT REGULATORY FRAMEWORK ANDSUPPLY ADEQUACY
Since 1993, there was an effort to attract privateinvestments to increase the financial capacity of the electricitysector , through the most important reform of the Ley delServicio Publico de Energia Electrica (LSPEE) , since thenationalization of the electricity sector in 1960.With this reform a new organization was set up that havethe following main characteristics:1.
The Comision Federal de Electricidad (CFE), anational and vertically integrated state-ownedutility, is the dominant utility in this organization.In particular, the new law preserves the monopolyof the CFE in the new public electric service.2.
The other state-owned utility, Luz y Fuerza delCentro (LyFC), is a regional utility and has asmaller role in the new organization.
Integrating the Electricity Markets in UnitedStates-Mexico-Central America
Miguel Angel Avila Rosales,
Senior Member, IEEE
, and Hector G Sarmiento,
Senior Member, IEEE