Methodology to value the externalities associated with the Electricity Generation in Mexico

According to the Law for the use of Renewable Energy and Ficing of Energy Transition (LAERFTE), the Secretary of Energy in consultation with the Ministry of Finance, the Ministry of Environment and Natural Resources, and the Ministry of Health, are developing a methodology for assessing the externalities associated with the generation of electricity from renewable and non-renewable sources in their different scales (generation capacities).

The General Law on Climate Change and Public Electricity Service Law establish that the costs of social and environmental externalities and emissions costs should be included in selection of sources for electric power generation. The aim is to favour investment in technologies with a low environmental impact and hence increase generation from power plants with low environmental impact. Through include externalities as an operation cost in the dispatch of electricity and know the cost-benefit analysis of the investment projects for electrical generation.  

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